Correlation Between Calibre Mining and Sydbank AS

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

Diversification Opportunities for Calibre Mining and Sydbank AS

0.58

Correlation Coefficient

Calibre Mining  Sydbank AS

Very weak diversification

The 3 months correlation between Calibre and Sydbank is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Sydbank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank AS 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 Sydbank AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank AS has no effect on the direction of Calibre Mining i.e., Calibre Mining and Sydbank AS go up and down completely randomly.

Pair Corralation between Calibre Mining and Sydbank AS

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 2.0 times more return on investment than Sydbank AS. However, Calibre Mining is 2.0 times more volatile than Sydbank AS. It trades about 0.23 of its potential returns per unit of risk. Sydbank AS is currently generating about 0.23 per unit of risk. If you would invest  141.00  in Calibre Mining Corp on December 29, 2024 and sell it today you would earn a total of  66.00  from holding Calibre Mining Corp or generate 46.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Calibre Mining Corp  vs.  Sydbank AS

Calibre Mining Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Calibre Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Sydbank AS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank AS are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sydbank AS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and Sydbank AS

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

The idea behind Calibre Mining Corp and Sydbank AS 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.