Correlation Between FC Investment and Endeavour Mining

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

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

Diversification Opportunities for FC Investment and Endeavour Mining

0.45

Correlation Coefficient

FC Investment  Endeavour Mining

Very weak diversification

The 3 months correlation between FCIT and Endeavour is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp and FC Investment 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 FC Investment Trust are associated (or correlated) with Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of FC Investment i.e., FC Investment and Endeavour Mining go up and down completely randomly.

Pair Corralation between FC Investment and Endeavour Mining

Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.33 times more return on investment than Endeavour Mining. However, FC Investment Trust is 3.0 times less risky than Endeavour Mining. It trades about 0.27 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.02 per unit of risk. If you would invest  99,861  in FC Investment Trust on April 22, 2025 and sell it today you would earn a total of  14,839  from holding FC Investment Trust or generate 14.86% return on investment over 90 days.

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

FC Investment Trust  vs.  Endeavour Mining Corp

FC Investment Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FC Investment Trust are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, FC Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Endeavour Mining Corp

Risk-Adjusted Performance

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 rather sound technical and fundamental indicators, Endeavour Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with FC Investment and Endeavour Mining

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

The idea behind FC Investment Trust and Endeavour Mining 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.