Correlation Between Telecom Plus and Endeavour Mining

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

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

Diversification Opportunities for Telecom Plus and Endeavour Mining

-0.23

Correlation Coefficient

Telecom Plus  Endeavour Mining

Very good diversification

The 3 months correlation between Telecom and Endeavour is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Plus 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 Telecom Plus 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 Telecom Plus 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 Telecom Plus i.e., Telecom Plus and Endeavour Mining go up and down completely randomly.

Pair Corralation between Telecom Plus and Endeavour Mining

Assuming the 90 days trading horizon Telecom Plus PLC is expected to under-perform the Endeavour Mining. But the stock apears to be less risky and, when comparing its historical volatility, Telecom Plus PLC is 1.68 times less risky than Endeavour Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Endeavour Mining Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  207,600  in Endeavour Mining Corp on May 18, 2025 and sell it today you would earn a total of  38,000  from holding Endeavour Mining Corp or generate 18.3% return on investment over 90 days.

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

Telecom Plus PLC  vs.  Endeavour Mining Corp

Telecom Plus PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Telecom Plus PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Telecom Plus is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Endeavour Mining Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Endeavour Mining Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Endeavour Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Telecom Plus and Endeavour Mining

The main advantage of trading using opposite Telecom Plus and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Plus 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 Telecom Plus 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.