Correlation Between Avino Silver and Endeavour Silver

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

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

Diversification Opportunities for Avino Silver and Endeavour Silver

0.85

Correlation Coefficient

Avino Silver  Endeavour Silver

Very poor diversification

The 3 months correlation between Avino and Endeavour is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Endeavour Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Silver Corp and Avino 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 Avino Silver Gold are associated (or correlated) with Endeavour Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Silver Corp has no effect on the direction of Avino Silver i.e., Avino Silver and Endeavour Silver go up and down completely randomly.

Pair Corralation between Avino Silver and Endeavour Silver

Considering the 90-day investment horizon Avino Silver is expected to generate 1.24 times less return on investment than Endeavour Silver. In addition to that, Avino Silver is 1.14 times more volatile than Endeavour Silver Corp. It trades about 0.13 of its total potential returns per unit of risk. Endeavour Silver Corp is currently generating about 0.18 per unit of volatility. If you would invest  345.00  in Endeavour Silver Corp on May 3, 2025 and sell it today you would earn a total of  162.00  from holding Endeavour Silver Corp or generate 46.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Avino Silver Gold  vs.  Endeavour Silver Corp

Avino Silver Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Avino Silver Gold are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Avino Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Endeavour Silver Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Endeavour Silver disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Avino Silver and Endeavour Silver

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

The idea behind Avino Silver Gold and Endeavour Silver 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.