Correlation Between Enduro Metals and McEwen Mining

Can any of the company-specific risk be diversified away by investing in both Enduro Metals and McEwen Mining 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 Enduro Metals and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enduro Metals Corp and McEwen Mining, you can compare the effects of market volatilities on Enduro Metals and McEwen Mining 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 Enduro Metals with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enduro Metals and McEwen Mining.

Diversification Opportunities for Enduro Metals and McEwen Mining

0.67

Correlation Coefficient

Enduro Metals  McEwen Mining

Poor diversification

The 3 months correlation between Enduro and McEwen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Enduro Metals Corp and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Enduro Metals 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 Enduro Metals Corp are associated (or correlated) with McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Enduro Metals i.e., Enduro Metals and McEwen Mining go up and down completely randomly.

Pair Corralation between Enduro Metals and McEwen Mining

Assuming the 90 days trading horizon Enduro Metals Corp is expected to under-perform the McEwen Mining. In addition to that, Enduro Metals is 1.3 times more volatile than McEwen Mining. It trades about -0.08 of its total potential returns per unit of risk. McEwen Mining is currently generating about 0.21 per unit of volatility. If you would invest  1,179  in McEwen Mining on April 3, 2025 and sell it today you would earn a total of  117.00  from holding McEwen Mining or generate 9.92% return on investment over 90 days.

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

Enduro Metals Corp  vs.  McEwen Mining

Enduro Metals Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enduro Metals Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Enduro Metals showed solid returns over the last few months and may actually be approaching a breakup point.

McEwen Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in McEwen Mining are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, McEwen Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enduro Metals and McEwen Mining

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

The idea behind Enduro Metals Corp and McEwen Mining 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.