Correlation Between Chalice Mining and Hotel Property

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

By analyzing existing cross correlation between Chalice Mining Limited and Hotel Property Investments, you can compare the effects of market volatilities on Chalice Mining and Hotel Property 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 Chalice Mining with a short position of Hotel Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chalice Mining and Hotel Property.

Diversification Opportunities for Chalice Mining and Hotel Property

-0.92

Correlation Coefficient

Chalice Mining  Hotel Property

Pay attention - limited upside

The 3 months correlation between Chalice and Hotel is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chalice Mining Limited and Hotel Property Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Property Inves and Chalice Mining 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 Chalice Mining Limited are associated (or correlated) with Hotel Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Property Inves has no effect on the direction of Chalice Mining i.e., Chalice Mining and Hotel Property go up and down completely randomly.

Pair Corralation between Chalice Mining and Hotel Property

Assuming the 90 days trading horizon Chalice Mining Limited is expected to generate 16.58 times more return on investment than Hotel Property. However, Chalice Mining is 16.58 times more volatile than Hotel Property Investments. It trades about 0.23 of its potential returns per unit of risk. Hotel Property Investments is currently generating about 0.09 per unit of risk. If you would invest  111.00  in Chalice Mining Limited on October 22, 2024 and sell it today you would earn a total of  13.00  from holding Chalice Mining Limited or generate 11.71% return on investment over 90 days.

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

Chalice Mining Limited  vs.  Hotel Property Investments

Chalice Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chalice Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hotel Property Inves

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hotel Property Investments are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Hotel Property may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Chalice Mining and Hotel Property

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

The idea behind Chalice Mining Limited and Hotel Property Investments 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.