Correlation Between E L and Endeavour Silver

Can any of the company-specific risk be diversified away by investing in both E L and Endeavour Silver 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 E L and Endeavour Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E L Financial Corp and Endeavour Silver Corp, you can compare the effects of market volatilities on E L and Endeavour Silver 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 E L with a short position of Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of E L and Endeavour Silver.

Diversification Opportunities for E L and Endeavour Silver

0.83

Correlation Coefficient

E L  Endeavour Silver

Very poor diversification

The 3 months correlation between ELF-PF and Endeavour is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding E L Financial Corp and Endeavour Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Silver Corp and E L 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 E L Financial Corp are associated (or correlated) with Endeavour Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Silver Corp has no effect on the direction of E L i.e., E L and Endeavour Silver go up and down completely randomly.

Pair Corralation between E L and Endeavour Silver

Assuming the 90 days trading horizon E L is expected to generate 5.45 times less return on investment than Endeavour Silver. But when comparing it to its historical volatility, E L Financial Corp is 8.07 times less risky than Endeavour Silver. It trades about 0.29 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  488.00  in Endeavour Silver Corp on April 22, 2025 and sell it today you would earn a total of  265.00  from holding Endeavour Silver Corp or generate 54.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

E L Financial Corp  vs.  Endeavour Silver Corp

E L Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in E L Financial Corp are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, E L may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Endeavour Silver Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Endeavour Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E L and Endeavour Silver

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

The idea behind E L Financial Corp and Endeavour Silver Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.