Correlation Between Calibre Mining and Sparta Capital

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

Diversification Opportunities for Calibre Mining and Sparta Capital

0.0

Correlation Coefficient

Calibre Mining  Sparta Capital

Pay attention - limited upside

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

Pair Corralation between Calibre Mining and Sparta Capital

If you would invest  244.00  in Calibre Mining Corp on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Calibre Mining Corp or generate 0.0% return on investment over 90 days.

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

Calibre Mining Corp  vs.  Sparta Capital

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 very healthy fundamental drivers, Calibre Mining is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Sparta Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sparta Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Sparta Capital is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Calibre Mining and Sparta Capital

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

The idea behind Calibre Mining Corp and Sparta Capital 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.