Correlation Between Calibre Mining and Cassiar Gold

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

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

Diversification Opportunities for Calibre Mining and Cassiar Gold

0.56

Correlation Coefficient

Calibre Mining  Cassiar Gold

Very weak diversification

The 3 months correlation between Calibre and Cassiar is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Calibre 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 Calibre Mining Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Calibre Mining i.e., Calibre Mining and Cassiar Gold go up and down completely randomly.

Pair Corralation between Calibre Mining and Cassiar Gold

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 0.77 times more return on investment than Cassiar Gold. However, Calibre Mining Corp is 1.31 times less risky than Cassiar Gold. It trades about 0.04 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.03 per unit of risk. If you would invest  189.00  in Calibre Mining Corp on October 8, 2024 and sell it today you would earn a total of  31.00  from holding Calibre Mining Corp or generate 16.4% return on investment over 90 days.

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

Calibre Mining Corp  vs.  Cassiar Gold Corp

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 unfluctuating performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Cassiar Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cassiar Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Calibre Mining and Cassiar Gold

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

The idea behind Calibre Mining Corp and Cassiar Gold 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.

Check out your portfolio center.

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.