Correlation Between Calibre Mining and ORMAT TECHNOLOGIES

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

Diversification Opportunities for Calibre Mining and ORMAT TECHNOLOGIES

-0.61

Correlation Coefficient

Calibre Mining  ORMAT TECHNOLOGIES

Excellent diversification

The 3 months correlation between Calibre and ORMAT is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and ORMAT TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORMAT TECHNOLOGIES has no effect on the direction of Calibre Mining i.e., Calibre Mining and ORMAT TECHNOLOGIES go up and down completely randomly.

Pair Corralation between Calibre Mining and ORMAT TECHNOLOGIES

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.82 times more return on investment than ORMAT TECHNOLOGIES. However, Calibre Mining is 1.82 times more volatile than ORMAT TECHNOLOGIES. It trades about 0.08 of its potential returns per unit of risk. ORMAT TECHNOLOGIES is currently generating about -0.01 per unit of risk. If you would invest  62.00  in Calibre Mining Corp on September 16, 2024 and sell it today you would earn a total of  92.00  from holding Calibre Mining Corp or generate 148.39% return on investment over 90 days.

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

Calibre Mining Corp  vs.  ORMAT TECHNOLOGIES

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 latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

ORMAT TECHNOLOGIES

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ORMAT TECHNOLOGIES are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ORMAT TECHNOLOGIES is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Calibre Mining and ORMAT TECHNOLOGIES

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

The idea behind Calibre Mining Corp and ORMAT TECHNOLOGIES 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.