Correlation Between Calibre Mining and ASTRA GRAPHIA

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

Diversification Opportunities for Calibre Mining and ASTRA GRAPHIA

0.2

Correlation Coefficient

Calibre Mining  ASTRA GRAPHIA

Modest diversification

The 3 months correlation between Calibre and ASTRA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and ASTRA GRAPHIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA GRAPHIA 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 ASTRA GRAPHIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA GRAPHIA has no effect on the direction of Calibre Mining i.e., Calibre Mining and ASTRA GRAPHIA go up and down completely randomly.

Pair Corralation between Calibre Mining and ASTRA GRAPHIA

Assuming the 90 days trading horizon Calibre Mining is expected to generate 5.41 times less return on investment than ASTRA GRAPHIA. But when comparing it to its historical volatility, Calibre Mining Corp is 8.34 times less risky than ASTRA GRAPHIA. It trades about 0.2 of its potential returns per unit of risk. ASTRA GRAPHIA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4.00  in ASTRA GRAPHIA on December 23, 2024 and sell it today you would earn a total of  1.60  from holding ASTRA GRAPHIA or generate 40.0% return on investment over 90 days.

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

Calibre Mining Corp  vs.  ASTRA GRAPHIA

Calibre Mining Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Calibre Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

ASTRA GRAPHIA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASTRA GRAPHIA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, ASTRA GRAPHIA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and ASTRA GRAPHIA

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

The idea behind Calibre Mining Corp and ASTRA GRAPHIA 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 Stocks Directory module to find actively traded stocks across global markets.