Correlation Between Calibre Mining and CTS Eventim

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

Diversification Opportunities for Calibre Mining and CTS Eventim

0.44

Correlation Coefficient

Calibre Mining  CTS Eventim

Very weak diversification

The 3 months correlation between Calibre and CTS is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG 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 CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of Calibre Mining i.e., Calibre Mining and CTS Eventim go up and down completely randomly.

Pair Corralation between Calibre Mining and CTS Eventim

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.14 times more return on investment than CTS Eventim. However, Calibre Mining is 1.14 times more volatile than CTS Eventim AG. It trades about -0.02 of its potential returns per unit of risk. CTS Eventim AG is currently generating about -0.05 per unit of risk. If you would invest  174.00  in Calibre Mining Corp on October 25, 2024 and sell it today you would lose (9.00) from holding Calibre Mining Corp or give up 5.17% of portfolio value over 90 days.

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

Calibre Mining Corp  vs.  CTS Eventim AG

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.

CTS Eventim AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTS Eventim AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Calibre Mining and CTS Eventim

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

The idea behind Calibre Mining Corp and CTS Eventim AG 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.