Correlation Between Calibre Mining and GRIFFIN MINING

Can any of the company-specific risk be diversified away by investing in both Calibre Mining and GRIFFIN 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 Calibre Mining and GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Calibre Mining and GRIFFIN 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 Calibre Mining with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and GRIFFIN MINING.

Diversification Opportunities for Calibre Mining and GRIFFIN MINING

0.81

Correlation Coefficient

Calibre Mining  GRIFFIN MINING

Very poor diversification

The 3 months correlation between Calibre and GRIFFIN is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Calibre Mining i.e., Calibre Mining and GRIFFIN MINING go up and down completely randomly.

Pair Corralation between Calibre Mining and GRIFFIN MINING

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.02 times more return on investment than GRIFFIN MINING. However, Calibre Mining is 1.02 times more volatile than GRIFFIN MINING LTD. It trades about 0.22 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 per unit of risk. If you would invest  141.00  in Calibre Mining Corp on December 30, 2024 and sell it today you would earn a total of  66.00  from holding Calibre Mining Corp or generate 46.81% return on investment over 90 days.

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

Calibre Mining Corp  vs.  GRIFFIN MINING LTD

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 17 (%) 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.

GRIFFIN MINING LTD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GRIFFIN MINING LTD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, GRIFFIN MINING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and GRIFFIN MINING

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

The idea behind Calibre Mining Corp and GRIFFIN MINING LTD 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.