Correlation Between Endeavour Silver and Sun Life

Can any of the company-specific risk be diversified away by investing in both Endeavour Silver and Sun Life 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 Sun Life 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 Sun Life Financial, you can compare the effects of market volatilities on Endeavour Silver and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Silver and Sun Life.

Diversification Opportunities for Endeavour Silver and Sun Life

0.29

Correlation Coefficient

Endeavour Silver  Sun Life

Modest diversification

The 3 months correlation between Endeavour and Sun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Silver Corp and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Endeavour Silver i.e., Endeavour Silver and Sun Life go up and down completely randomly.

Pair Corralation between Endeavour Silver and Sun Life

Assuming the 90 days trading horizon Endeavour Silver Corp is expected to generate 6.8 times more return on investment than Sun Life. However, Endeavour Silver is 6.8 times more volatile than Sun Life Financial. It trades about 0.26 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.18 per unit of risk. If you would invest  450.00  in Endeavour Silver Corp on May 14, 2025 and sell it today you would earn a total of  312.00  from holding Endeavour Silver Corp or generate 69.33% return on investment over 90 days.

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

Endeavour Silver Corp  vs.  Sun Life Financial

Endeavour Silver Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Silver Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Endeavour Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Sun Life Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Financial are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Sun Life is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Endeavour Silver and Sun Life

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

The idea behind Endeavour Silver Corp and Sun Life Financial 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.