Correlation Between Calibre Mining and T-Mobile

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

Diversification Opportunities for Calibre Mining and T-Mobile

-0.25

Correlation Coefficient

Calibre Mining  T-Mobile

Very good diversification

The 3 months correlation between Calibre and T-Mobile is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile 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 T-Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of Calibre Mining i.e., Calibre Mining and T-Mobile go up and down completely randomly.

Pair Corralation between Calibre Mining and T-Mobile

Assuming the 90 days trading horizon Calibre Mining is expected to generate 2.29 times less return on investment than T-Mobile. In addition to that, Calibre Mining is 1.69 times more volatile than T Mobile. It trades about 0.08 of its total potential returns per unit of risk. T Mobile is currently generating about 0.3 per unit of volatility. If you would invest  17,789  in T Mobile on September 5, 2024 and sell it today you would earn a total of  5,711  from holding T Mobile or generate 32.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Calibre Mining Corp  vs.  T Mobile

Calibre Mining Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Calibre Mining may actually be approaching a critical reversion point that can send shares even higher in January 2025.

T Mobile

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Mobile are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, T-Mobile reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and T-Mobile

The main advantage of trading using opposite Calibre Mining and T-Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, T-Mobile 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 T-Mobile will offset losses from the drop in T-Mobile's long position.

The idea behind Calibre Mining Corp and T Mobile 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.