Correlation Between Endeavour Mining and Abrdn Property

Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Abrdn Property at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Endeavour Mining and Abrdn Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Endeavour Mining Corp and abrdn Property Income, you can compare the effects of market volatilities on Endeavour Mining and Abrdn Property and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Endeavour Mining with a short position of Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Abrdn Property.

Diversification Opportunities for Endeavour Mining and Abrdn Property

-0.52

Correlation Coefficient

Endeavour Mining  Abrdn Property

Excellent diversification

The 3 months correlation between Endeavour and Abrdn is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income and Endeavour Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Endeavour Mining Corp are associated (or correlated) with Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Abrdn Property go up and down completely randomly.

Pair Corralation between Endeavour Mining and Abrdn Property

Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the Abrdn Property. In addition to that, Endeavour Mining is 1.24 times more volatile than abrdn Property Income. It trades about -0.03 of its total potential returns per unit of risk. abrdn Property Income is currently generating about 0.13 per unit of volatility. If you would invest  510.00  in abrdn Property Income on April 15, 2025 and sell it today you would earn a total of  26.00  from holding abrdn Property Income or generate 5.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Endeavour Mining Corp  vs.  abrdn Property Income

Endeavour Mining Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Mining Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Endeavour Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Abrdn Property is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Endeavour Mining and Abrdn Property

The main advantage of trading using opposite Endeavour Mining and Abrdn Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Abrdn Property can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abrdn Property will offset losses from the drop in Abrdn Property's long position.

The idea behind Endeavour Mining Corp and abrdn Property Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.