Correlation Between Endeavour Silver and Great Panther

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

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

Diversification Opportunities for Endeavour Silver and Great Panther

0.0

Correlation Coefficient

Endeavour Silver  Great Panther

Pay attention - limited upside

The 3 months correlation between Endeavour and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Great Panther Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Panther Mining and Endeavour Silver 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 Silver Corp are associated (or correlated) with Great Panther. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Panther Mining has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Great Panther go up and down completely randomly.

Pair Corralation between Endeavour Silver and Great Panther

If you would invest (100.00) in Great Panther Mining on February 3, 2024 and sell it today you would earn a total of  100.00  from holding Great Panther Mining or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Endeavour Silver Corp  vs.  Great Panther Mining

Endeavour Silver Corp

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Endeavour Silver disclosed solid returns over the last few months and may actually be approaching a breakup point.

Great Panther Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Great Panther Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Great Panther is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Endeavour Silver and Great Panther

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

The idea behind Endeavour Silver Corp and Great Panther 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.