Correlation Between Calibre Mining and WIZZ AIR

Can any of the company-specific risk be diversified away by investing in both Calibre Mining and WIZZ AIR 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 WIZZ AIR 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 WIZZ AIR HLDGUNSPADR4, you can compare the effects of market volatilities on Calibre Mining and WIZZ AIR 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 WIZZ AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and WIZZ AIR.

Diversification Opportunities for Calibre Mining and WIZZ AIR

-0.6

Correlation Coefficient

Calibre Mining  WIZZ AIR

Excellent diversification

The 3 months correlation between Calibre and WIZZ is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and WIZZ AIR HLDGUNSPADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIZZ AIR HLDGUNSPADR4 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 WIZZ AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIZZ AIR HLDGUNSPADR4 has no effect on the direction of Calibre Mining i.e., Calibre Mining and WIZZ AIR go up and down completely randomly.

Pair Corralation between Calibre Mining and WIZZ AIR

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.03 times more return on investment than WIZZ AIR. However, Calibre Mining is 1.03 times more volatile than WIZZ AIR HLDGUNSPADR4. It trades about 0.16 of its potential returns per unit of risk. WIZZ AIR HLDGUNSPADR4 is currently generating about -0.28 per unit of risk. If you would invest  144.00  in Calibre Mining Corp on October 22, 2024 and sell it today you would earn a total of  10.00  from holding Calibre Mining Corp or generate 6.94% return on investment over 90 days.

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

Calibre Mining Corp  vs.  WIZZ AIR HLDGUNSPADR4

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 latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

WIZZ AIR HLDGUNSPADR4

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WIZZ AIR HLDGUNSPADR4 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, WIZZ AIR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and WIZZ AIR

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

The idea behind Calibre Mining Corp and WIZZ AIR HLDGUNSPADR4 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.