Correlation Between DATANG INTL and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both DATANG INTL 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 DATANG INTL and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATANG INTL POW and Calibre Mining Corp, you can compare the effects of market volatilities on DATANG INTL 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 DATANG INTL with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATANG INTL and Calibre Mining.
Diversification Opportunities for DATANG INTL and Calibre Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DATANG and Calibre is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding DATANG INTL POW 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 DATANG INTL 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 DATANG INTL POW 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 DATANG INTL i.e., DATANG INTL and Calibre Mining go up and down completely randomly.
Pair Corralation between DATANG INTL and Calibre Mining
Assuming the 90 days trading horizon DATANG INTL is expected to generate 1.81 times less return on investment than Calibre Mining. In addition to that, DATANG INTL is 1.19 times more volatile than Calibre Mining Corp. It trades about 0.04 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.09 per unit of volatility. If you would invest 95.00 in Calibre Mining Corp on August 25, 2024 and sell it today you would earn a total of 65.00 from holding Calibre Mining Corp or generate 68.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATANG INTL POW vs. Calibre Mining Corp
Performance |
| Timeline |
| DATANG INTL POW |
| Calibre Mining Corp |
DATANG INTL and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATANG INTL and Calibre Mining
The main advantage of trading using opposite DATANG INTL and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATANG INTL 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.| DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc | DATANG INTL vs. Apple Inc |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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