Correlation Between Calibre Mining and Skeena Resources

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

Diversification Opportunities for Calibre Mining and Skeena Resources

0.14

Correlation Coefficient

Calibre Mining  Skeena Resources

Average diversification

The 3 months correlation between Calibre and Skeena is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena Resources 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 Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of Calibre Mining i.e., Calibre Mining and Skeena Resources go up and down completely randomly.

Pair Corralation between Calibre Mining and Skeena Resources

Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the Skeena Resources. But the stock apears to be less risky and, when comparing its historical volatility, Calibre Mining Corp is 1.08 times less risky than Skeena Resources. The stock trades about -0.12 of its potential returns per unit of risk. The Skeena Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,207  in Skeena Resources on September 20, 2024 and sell it today you would earn a total of  72.00  from holding Skeena Resources or generate 5.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Calibre Mining Corp  vs.  Skeena Resources

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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Skeena Resources

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Skeena Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Skeena Resources may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Calibre Mining and Skeena Resources

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

The idea behind Calibre Mining Corp and Skeena Resources 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 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.