Correlation Between Calibre Mining and SAFEROADS HLDGS

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

Diversification Opportunities for Calibre Mining and SAFEROADS HLDGS

0.0

Correlation Coefficient

Calibre Mining  SAFEROADS HLDGS

Pay attention - limited upside

The 3 months correlation between Calibre and SAFEROADS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and SAFEROADS HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFEROADS HLDGS 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 SAFEROADS HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFEROADS HLDGS has no effect on the direction of Calibre Mining i.e., Calibre Mining and SAFEROADS HLDGS go up and down completely randomly.

Pair Corralation between Calibre Mining and SAFEROADS HLDGS

If you would invest  136.00  in Calibre Mining Corp on October 4, 2024 and sell it today you would earn a total of  5.00  from holding Calibre Mining Corp or generate 3.68% return on investment over 90 days.

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

Calibre Mining Corp  vs.  SAFEROADS HLDGS

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 February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SAFEROADS HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAFEROADS HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SAFEROADS HLDGS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Calibre Mining and SAFEROADS HLDGS

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

The idea behind Calibre Mining Corp and SAFEROADS HLDGS 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.