Correlation Between Calibre Mining and HF SINCLAIR

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

Diversification Opportunities for Calibre Mining and HF SINCLAIR

0.43

Correlation Coefficient

Calibre Mining  HF SINCLAIR

Very weak diversification

The 3 months correlation between Calibre and HL80 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P 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 HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of Calibre Mining i.e., Calibre Mining and HF SINCLAIR go up and down completely randomly.

Pair Corralation between Calibre Mining and HF SINCLAIR

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.23 times more return on investment than HF SINCLAIR. However, Calibre Mining is 1.23 times more volatile than HF SINCLAIR P. It trades about 0.03 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.06 per unit of risk. If you would invest  165.00  in Calibre Mining Corp on September 13, 2024 and sell it today you would earn a total of  5.00  from holding Calibre Mining Corp or generate 3.03% return on investment over 90 days.

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

Calibre Mining Corp  vs.  HF SINCLAIR P

Calibre Mining Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

HF SINCLAIR P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HF SINCLAIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Calibre Mining and HF SINCLAIR

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

The idea behind Calibre Mining Corp and HF SINCLAIR P 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.