Correlation Between BB Liquidating and Enduro Metals

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

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

Diversification Opportunities for BB Liquidating and Enduro Metals

0.25

Correlation Coefficient

BB Liquidating  Enduro Metals

Modest diversification

The 3 months correlation between BLIAQ and Enduro is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BB Liquidating and Enduro Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enduro Metals and BB Liquidating 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 BB Liquidating are associated (or correlated) with Enduro Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enduro Metals has no effect on the direction of BB Liquidating i.e., BB Liquidating and Enduro Metals go up and down completely randomly.

Pair Corralation between BB Liquidating and Enduro Metals

Assuming the 90 days horizon BB Liquidating is expected to generate 55.08 times more return on investment than Enduro Metals. However, BB Liquidating is 55.08 times more volatile than Enduro Metals. It trades about 0.21 of its potential returns per unit of risk. Enduro Metals is currently generating about 0.06 per unit of risk. If you would invest  1.00  in BB Liquidating on September 10, 2025 and sell it today you would earn a total of  0.80  from holding BB Liquidating or generate 80.0% return on investment over 90 days.

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

BB Liquidating  vs.  Enduro Metals

BB Liquidating

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BB Liquidating are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, BB Liquidating reported solid returns over the last few months and may actually be approaching a breakup point.

Enduro Metals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enduro Metals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Enduro Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BB Liquidating and Enduro Metals

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

The idea behind BB Liquidating and Enduro Metals 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.