Correlation Between AngloGold Ashanti and Endeavour Mining

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

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

Diversification Opportunities for AngloGold Ashanti and Endeavour Mining

0.8

Correlation Coefficient

AngloGold Ashanti  Endeavour Mining

Very poor diversification

The 3 months correlation between AngloGold and Endeavour is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding AngloGold Ashanti plc and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp and AngloGold Ashanti 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 AngloGold Ashanti plc are associated (or correlated) with Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of AngloGold Ashanti i.e., AngloGold Ashanti and Endeavour Mining go up and down completely randomly.

Pair Corralation between AngloGold Ashanti and Endeavour Mining

Allowing for the 90-day total investment horizon AngloGold Ashanti plc is expected to generate 1.22 times more return on investment than Endeavour Mining. However, AngloGold Ashanti is 1.22 times more volatile than Endeavour Mining Corp. It trades about 0.09 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about 0.05 per unit of risk. If you would invest  4,202  in AngloGold Ashanti plc on May 5, 2025 and sell it today you would earn a total of  674.00  from holding AngloGold Ashanti plc or generate 16.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

AngloGold Ashanti plc  vs.  Endeavour Mining Corp

AngloGold Ashanti plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AngloGold Ashanti plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, AngloGold Ashanti unveiled solid returns over the last few months and may actually be approaching a breakup point.

Endeavour Mining Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Mining Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Endeavour Mining may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AngloGold Ashanti and Endeavour Mining

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

The idea behind AngloGold Ashanti plc and Endeavour Mining 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.