Correlation Between Endeavour Silver and Centerra Gold
Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and Centerra 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 Silver and Centerra Gold 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 Centerra Gold, you can compare the effects of market volatilities on Endeavour Silver and Centerra 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 Silver with a short position of Centerra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and Centerra Gold.
Diversification Opportunities for Endeavour Silver and Centerra Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Endeavour and Centerra is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Centerra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerra Gold 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 Centerra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerra Gold has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Centerra Gold go up and down completely randomly.
Pair Corralation between Endeavour Silver and Centerra Gold
Considering the 90-day investment horizon Endeavour Silver is expected to generate 1.23 times less return on investment than Centerra Gold. In addition to that, Endeavour Silver is 1.69 times more volatile than Centerra Gold. It trades about 0.14 of its total potential returns per unit of risk. Centerra Gold is currently generating about 0.29 per unit of volatility. If you would invest 718.00 in Centerra Gold on August 20, 2025 and sell it today you would earn a total of 463.00 from holding Centerra Gold or generate 64.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Silver Corp vs. Centerra Gold
Performance |
| Timeline |
| Endeavour Silver Corp |
| Centerra Gold |
Endeavour Silver and Centerra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Silver and Centerra Gold
The main advantage of trading using opposite Endeavour Silver and Centerra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Silver position performs unexpectedly, Centerra 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 Centerra Gold will offset losses from the drop in Centerra Gold's long position.| Endeavour Silver vs. Perpetua Resources Corp | Endeavour Silver vs. Fortuna Silver Mines | Endeavour Silver vs. Aura Minerals Common | Endeavour Silver vs. Sayona Mining Limited |
| Centerra Gold vs. Seabridge Gold | Centerra Gold vs. DRDGOLD Limited ADR | Centerra Gold vs. Boise Cascad Llc | Centerra Gold vs. Fortuna Silver Mines |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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