Correlation Between MASI AGRICOLA and Calibre Mining

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

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

Diversification Opportunities for MASI AGRICOLA and Calibre Mining

0.0

Correlation Coefficient

MASI AGRICOLA  Calibre Mining

Pay attention - limited upside

The 3 months correlation between MASI and Calibre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MASI AGRICOLA SPA and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp and MASI AGRICOLA 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 MASI AGRICOLA SPA are associated (or correlated) with Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of MASI AGRICOLA i.e., MASI AGRICOLA and Calibre Mining go up and down completely randomly.

Pair Corralation between MASI AGRICOLA and Calibre Mining

If you would invest  139.00  in Calibre Mining Corp on October 26, 2024 and sell it today you would earn a total of  26.00  from holding Calibre Mining Corp or generate 18.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.81%
Values	Daily Returns

MASI AGRICOLA SPA  vs.  Calibre Mining Corp

MASI AGRICOLA SPA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MASI AGRICOLA SPA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MASI AGRICOLA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Calibre Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MASI AGRICOLA and Calibre Mining

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

The idea behind MASI AGRICOLA SPA and Calibre 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.