Correlation Between Endeavour Mining and Pan American

Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Pan American 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 Pan American 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 Pan American Silver, you can compare the effects of market volatilities on Endeavour Mining and Pan American 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 Pan American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Pan American.

Diversification Opportunities for Endeavour Mining and Pan American

0.36

Correlation Coefficient

Endeavour Mining  Pan American

Weak diversification

The 3 months correlation between Endeavour and Pan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Pan American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan American Silver 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 Pan American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan American Silver has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Pan American go up and down completely randomly.

Pair Corralation between Endeavour Mining and Pan American

Assuming the 90 days trading horizon Endeavour Mining is expected to generate 2.93 times less return on investment than Pan American. But when comparing it to its historical volatility, Endeavour Mining Corp is 1.3 times less risky than Pan American. It trades about 0.02 of its potential returns per unit of risk. Pan American Silver is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,600  in Pan American Silver on April 22, 2025 and sell it today you would earn a total of  255.00  from holding Pan American Silver or generate 7.08% return on investment over 90 days.

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

Endeavour Mining Corp  vs.  Pan American Silver

Endeavour Mining Corp

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Mining Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Endeavour Mining is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pan American Silver

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pan American Silver are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Pan American may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Endeavour Mining and Pan American

The main advantage of trading using opposite Endeavour Mining and Pan American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Pan American 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 Pan American will offset losses from the drop in Pan American's long position.

The idea behind Endeavour Mining Corp and Pan American Silver 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.