Correlation Between Endeavour Mining and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Coca Cola 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 Coca Cola 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 Coca Cola HBC, you can compare the effects of market volatilities on Endeavour Mining and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Coca Cola.
Diversification Opportunities for Endeavour Mining and Coca Cola
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Endeavour and Coca is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Coca Cola HBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola HBC 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola HBC has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Coca Cola go up and down completely randomly.
Pair Corralation between Endeavour Mining and Coca Cola
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to generate 2.1 times more return on investment than Coca Cola. However, Endeavour Mining is 2.1 times more volatile than Coca Cola HBC. It trades about 0.09 of its potential returns per unit of risk. Coca Cola HBC is currently generating about 0.12 per unit of risk. If you would invest 205,600 in Endeavour Mining Corp on April 24, 2025 and sell it today you would earn a total of 27,600 from holding Endeavour Mining Corp or generate 13.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Endeavour Mining Corp vs. Coca Cola HBC
Performance |
Timeline |
Endeavour Mining Corp |
Coca Cola HBC |
Endeavour Mining and Coca Cola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Endeavour Mining and Coca Cola
The main advantage of trading using opposite Endeavour Mining and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.Endeavour Mining vs. Everplay Group PLC | Endeavour Mining vs. Infrastrutture Wireless Italiane | Endeavour Mining vs. Bloomsbury Publishing Plc | Endeavour Mining vs. JB Hunt Transport |
Coca Cola vs. Blackrock World Mining | Coca Cola vs. Metals Exploration Plc | Coca Cola vs. British American Tobacco | Coca Cola vs. Adriatic Metals |
Check out your portfolio center.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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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