Correlation Between Endeavour Mining and Sysco Corp

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

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

Diversification Opportunities for Endeavour Mining and Sysco Corp

-0.56

Correlation Coefficient

Endeavour Mining  Sysco Corp

Excellent diversification

The 3 months correlation between Endeavour and Sysco is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Sysco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysco Corp and Endeavour 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 Endeavour Mining Corp are associated (or correlated) with Sysco Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysco Corp has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Sysco Corp go up and down completely randomly.

Pair Corralation between Endeavour Mining and Sysco Corp

Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the Sysco Corp. In addition to that, Endeavour Mining is 2.05 times more volatile than Sysco Corp. It trades about -0.15 of its total potential returns per unit of risk. Sysco Corp is currently generating about 0.09 per unit of volatility. If you would invest  7,371  in Sysco Corp on September 19, 2024 and sell it today you would earn a total of  463.00  from holding Sysco Corp or generate 6.28% return on investment over 90 days.

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

Endeavour Mining Corp  vs.  Sysco Corp

Endeavour Mining Corp

Risk-Adjusted Performance

0 of 100

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Sysco Corp

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sysco Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Sysco Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Endeavour Mining and Sysco Corp

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

The idea behind Endeavour Mining Corp and Sysco 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.