Correlation Between Endeavour Mining and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining and Barrick Gold 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 Barrick Gold 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 Barrick Gold Corp, you can compare the effects of market volatilities on Endeavour Mining and Barrick Gold 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 Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Barrick Gold.
Diversification Opportunities for Endeavour Mining and Barrick Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Endeavour and Barrick is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Endeavour Mining i.e., Endeavour Mining and Barrick Gold go up and down completely randomly.
Pair Corralation between Endeavour Mining and Barrick Gold
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 1.72 times less return on investment than Barrick Gold. But when comparing it to its historical volatility, Endeavour Mining Corp is 1.07 times less risky than Barrick Gold. It trades about 0.15 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,434 in Barrick Gold Corp on August 20, 2025 and sell it today you would earn a total of 1,764 from holding Barrick Gold Corp or generate 51.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Barrick Gold Corp
Performance |
| Timeline |
| Endeavour Mining Corp |
| Barrick Gold Corp |
Endeavour Mining and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Barrick Gold
The main advantage of trading using opposite Endeavour Mining and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.| Endeavour Mining vs. Equinox Gold Corp | Endeavour Mining vs. IAMGold | Endeavour Mining vs. Alamos Gold | Endeavour Mining vs. New Gold |
| Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold Corp | Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Franco Nevada |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |