Correlation Between Calibre Mining and ADRIATIC METALS

Can any of the company-specific risk be diversified away by investing in both Calibre Mining and ADRIATIC METALS 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on Calibre Mining and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and ADRIATIC METALS.

Diversification Opportunities for Calibre Mining and ADRIATIC METALS

0.33

Correlation Coefficient

Calibre Mining  ADRIATIC METALS

Weak diversification

The 3 months correlation between Calibre and ADRIATIC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of Calibre Mining i.e., Calibre Mining and ADRIATIC METALS go up and down completely randomly.

Pair Corralation between Calibre Mining and ADRIATIC METALS

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 0.82 times more return on investment than ADRIATIC METALS. However, Calibre Mining Corp is 1.22 times less risky than ADRIATIC METALS. It trades about 0.28 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.11 per unit of risk. If you would invest  144.00  in Calibre Mining Corp on October 24, 2024 and sell it today you would earn a total of  21.00  from holding Calibre Mining Corp or generate 14.58% return on investment over 90 days.

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

Calibre Mining Corp  vs.  ADRIATIC METALS LS 013355

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 rather sound technical and fundamental indicators, Calibre Mining is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ADRIATIC METALS LS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ADRIATIC METALS LS 013355 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ADRIATIC METALS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Calibre Mining and ADRIATIC METALS

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

The idea behind Calibre Mining Corp and ADRIATIC METALS LS 013355 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.