Correlation Between Canaf Investments and Enduro Metals

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

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

Diversification Opportunities for Canaf Investments and Enduro Metals

0.11

Correlation Coefficient

Canaf Investments  Enduro Metals

Average diversification

The 3 months correlation between Canaf and Enduro is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Enduro Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enduro Metals Corp and Canaf Investments 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 Canaf Investments 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 Corp has no effect on the direction of Canaf Investments i.e., Canaf Investments and Enduro Metals go up and down completely randomly.

Pair Corralation between Canaf Investments and Enduro Metals

Assuming the 90 days horizon Canaf Investments is expected to generate 0.59 times more return on investment than Enduro Metals. However, Canaf Investments is 1.68 times less risky than Enduro Metals. It trades about 0.17 of its potential returns per unit of risk. Enduro Metals Corp is currently generating about 0.02 per unit of risk. If you would invest  30.00  in Canaf Investments on May 7, 2025 and sell it today you would earn a total of  10.00  from holding Canaf Investments or generate 33.33% return on investment over 90 days.

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

Canaf Investments  vs.  Enduro Metals Corp

Canaf Investments

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canaf Investments are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Canaf Investments showed solid returns over the last few months and may actually be approaching a breakup point.

Enduro Metals Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enduro Metals Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Enduro Metals may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Canaf Investments and Enduro Metals

The main advantage of trading using opposite Canaf Investments and Enduro Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments 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 Canaf Investments and Enduro Metals 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.