Correlation Between FANDIFI TECHNOLOGY and Calibre Mining

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

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

Diversification Opportunities for FANDIFI TECHNOLOGY and Calibre Mining

0.0

Correlation Coefficient

FANDIFI TECHNOLOGY  Calibre Mining

Pay attention - limited upside

The 3 months correlation between FANDIFI and Calibre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Calibre Mining go up and down completely randomly.

Pair Corralation between FANDIFI TECHNOLOGY and Calibre Mining

Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to under-perform the Calibre Mining. In addition to that, FANDIFI TECHNOLOGY is 2.94 times more volatile than Calibre Mining Corp. It trades about -0.01 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.09 per unit of volatility. If you would invest  90.00  in Calibre Mining Corp on October 8, 2024 and sell it today you would earn a total of  59.00  from holding Calibre Mining Corp or generate 65.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

FANDIFI TECHNOLOGY P  vs.  Calibre Mining Corp

FANDIFI TECHNOLOGY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FANDIFI TECHNOLOGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FANDIFI TECHNOLOGY is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with FANDIFI TECHNOLOGY and Calibre Mining

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

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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.