Correlation Between CDN IMPERIAL and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL 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 CDN IMPERIAL and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and Calibre Mining Corp, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and Calibre Mining.
Diversification Opportunities for CDN IMPERIAL and Calibre Mining
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CDN and Calibre is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK 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 CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and Calibre Mining go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and Calibre Mining
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.43 times more return on investment than Calibre Mining. However, CDN IMPERIAL BANK is 2.33 times less risky than Calibre Mining. It trades about 0.0 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 6,113 in CDN IMPERIAL BANK on October 22, 2024 and sell it today you would lose (9.00) from holding CDN IMPERIAL BANK or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. Calibre Mining Corp
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| Calibre Mining Corp |
CDN IMPERIAL and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and Calibre Mining
The main advantage of trading using opposite CDN IMPERIAL and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. PTT Global Chemical | CDN IMPERIAL vs. China BlueChemical | CDN IMPERIAL vs. Silicon Motion Technology | CDN IMPERIAL vs. De Grey Mining |
| Calibre Mining vs. SAN MIGUEL BREWERY | Calibre Mining vs. BOSTON BEER A | Calibre Mining vs. CDN IMPERIAL BANK | Calibre Mining vs. Direct Line Insurance |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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