Correlation Between SSR Mining and Endeavour Mining

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

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

Diversification Opportunities for SSR Mining and Endeavour Mining

0.8

Correlation Coefficient

SSR Mining  Endeavour Mining

Very poor diversification

The 3 months correlation between SSR and Endeavour is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining 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 SSR 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 SSR Mining 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 SSR Mining i.e., SSR Mining and Endeavour Mining go up and down completely randomly.

Pair Corralation between SSR Mining and Endeavour Mining

Assuming the 90 days trading horizon SSR Mining is expected to generate 1.28 times more return on investment than Endeavour Mining. However, SSR Mining is 1.28 times more volatile than Endeavour Mining Corp. It trades about 0.07 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.01 per unit of risk. If you would invest  1,460  in SSR Mining on April 21, 2025 and sell it today you would earn a total of  162.00  from holding SSR Mining or generate 11.1% return on investment over 90 days.

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

SSR Mining  vs.  Endeavour Mining Corp

SSR Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Endeavour Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Endeavour Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with SSR Mining and Endeavour Mining

The main advantage of trading using opposite SSR Mining and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining 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 SSR Mining 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.