Correlation Between Calibre Mining and AUSTEVOLL SEAFOOD

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

Diversification Opportunities for Calibre Mining and AUSTEVOLL SEAFOOD

0.43

Correlation Coefficient

Calibre Mining  AUSTEVOLL SEAFOOD

Very weak diversification

The 3 months correlation between Calibre and AUSTEVOLL is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of Calibre Mining i.e., Calibre Mining and AUSTEVOLL SEAFOOD go up and down completely randomly.

Pair Corralation between Calibre Mining and AUSTEVOLL SEAFOOD

Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the AUSTEVOLL SEAFOOD. In addition to that, Calibre Mining is 1.68 times more volatile than AUSTEVOLL SEAFOOD. It trades about -0.07 of its total potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.06 per unit of volatility. If you would invest  831.00  in AUSTEVOLL SEAFOOD on October 22, 2024 and sell it today you would earn a total of  39.00  from holding AUSTEVOLL SEAFOOD or generate 4.69% return on investment over 90 days.

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

Calibre Mining Corp  vs.  AUSTEVOLL SEAFOOD

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.

AUSTEVOLL SEAFOOD

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AUSTEVOLL SEAFOOD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, AUSTEVOLL SEAFOOD is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Calibre Mining and AUSTEVOLL SEAFOOD

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

The idea behind Calibre Mining Corp and AUSTEVOLL SEAFOOD 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.