Correlation Between Calibre Mining and Media

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

Diversification Opportunities for Calibre Mining and Media

-0.36

Correlation Coefficient

Calibre Mining  Media

Very good diversification

The 3 months correlation between Calibre and Media is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Calibre Mining i.e., Calibre Mining and Media go up and down completely randomly.

Pair Corralation between Calibre Mining and Media

Assuming the 90 days trading horizon Calibre Mining is expected to generate 2.84 times less return on investment than Media. But when comparing it to its historical volatility, Calibre Mining Corp is 1.38 times less risky than Media. It trades about 0.07 of its potential returns per unit of risk. Media and Games is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Media and Games on October 2, 2024 and sell it today you would earn a total of  215.00  from holding Media and Games or generate 215.0% return on investment over 90 days.

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

Calibre Mining Corp  vs.  Media and Games

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 uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Media and Games

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Media and Games 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 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 Media

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

The idea behind Calibre Mining Corp and Media and Games 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.