Correlation Between Calibre Mining and KKR REAL

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

Diversification Opportunities for Calibre Mining and KKR REAL

0.32

Correlation Coefficient

Calibre Mining  KKR REAL

Weak diversification

The 3 months correlation between Calibre and KKR is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and KKR REAL ESTFINTR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR REAL ESTFINTR 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 KKR REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR REAL ESTFINTR has no effect on the direction of Calibre Mining i.e., Calibre Mining and KKR REAL go up and down completely randomly.

Pair Corralation between Calibre Mining and KKR REAL

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 2.24 times more return on investment than KKR REAL. However, Calibre Mining is 2.24 times more volatile than KKR REAL ESTFINTR. It trades about 0.31 of its potential returns per unit of risk. KKR REAL ESTFINTR is currently generating about 0.07 per unit of risk. If you would invest  142.00  in Calibre Mining Corp on October 26, 2024 and sell it today you would earn a total of  23.00  from holding Calibre Mining Corp or generate 16.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Calibre Mining Corp  vs.  KKR REAL ESTFINTR

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

KKR REAL ESTFINTR

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Calibre Mining and KKR REAL

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

The idea behind Calibre Mining Corp and KKR REAL ESTFINTR 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.