Correlation Between SERI INDUSTRIAL and Calibre Mining

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

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

Diversification Opportunities for SERI INDUSTRIAL and Calibre Mining

-0.63

Correlation Coefficient

SERI INDUSTRIAL  Calibre Mining

Excellent diversification

The 3 months correlation between SERI and Calibre is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 SERI INDUSTRIAL i.e., SERI INDUSTRIAL and Calibre Mining go up and down completely randomly.

Pair Corralation between SERI INDUSTRIAL and Calibre Mining

Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the Calibre Mining. In addition to that, SERI INDUSTRIAL is 1.37 times more volatile than Calibre Mining Corp. It trades about -0.15 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.21 per unit of volatility. If you would invest  144.00  in Calibre Mining Corp on December 21, 2024 and sell it today you would earn a total of  57.00  from holding Calibre Mining Corp or generate 39.58% return on investment over 90 days.

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

SERI INDUSTRIAL EO  vs.  Calibre Mining Corp

SERI INDUSTRIAL EO

Risk-Adjusted Performance

Very Weak

Over the last 90 days SERI INDUSTRIAL EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Calibre Mining Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Calibre Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SERI INDUSTRIAL and Calibre Mining

The main advantage of trading using opposite SERI INDUSTRIAL and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.