Correlation Between MACOM Technology and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both MACOM Technology and Calibre Mining 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 MACOM Technology and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MACOM Technology Solutions and Calibre Mining Corp, you can compare the effects of market volatilities on MACOM Technology and Calibre Mining 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 MACOM Technology with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and Calibre Mining.
Diversification Opportunities for MACOM Technology and Calibre Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MACOM and Calibre is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp and MACOM Technology 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 MACOM Technology Solutions are associated (or correlated) with Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of MACOM Technology i.e., MACOM Technology and Calibre Mining go up and down completely randomly.
Pair Corralation between MACOM Technology and Calibre Mining
Assuming the 90 days horizon MACOM Technology Solutions is expected to generate 1.43 times more return on investment than Calibre Mining. However, MACOM Technology is 1.43 times more volatile than Calibre Mining Corp. It trades about 0.18 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.0 per unit of risk. If you would invest 10,800 in MACOM Technology Solutions on August 31, 2024 and sell it today you would earn a total of 1,600 from holding MACOM Technology Solutions or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MACOM Technology Solutions vs. Calibre Mining Corp
Performance |
| Timeline |
| MACOM Technology Sol |
| Calibre Mining Corp |
MACOM Technology and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MACOM Technology and Calibre Mining
The main advantage of trading using opposite MACOM Technology and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM Technology position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| MACOM Technology vs. Spirent Communications plc | MACOM Technology vs. Charter Communications | MACOM Technology vs. Ribbon Communications | MACOM Technology vs. T MOBILE US |
| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |