Correlation Between Caledonia Mining and Collective Mining
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining and Collective 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 Caledonia Mining and Collective Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Collective Mining, you can compare the effects of market volatilities on Caledonia Mining and Collective 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 Caledonia Mining with a short position of Collective Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Collective Mining.
Diversification Opportunities for Caledonia Mining and Collective Mining
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Caledonia and Collective is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining and Collective Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collective Mining and Caledonia 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 Caledonia Mining are associated (or correlated) with Collective Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collective Mining has no effect on the direction of Caledonia Mining i.e., Caledonia Mining and Collective Mining go up and down completely randomly.
Pair Corralation between Caledonia Mining and Collective Mining
If you would invest 331.00 in Collective Mining on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Collective Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Caledonia Mining vs. Collective Mining
Performance |
| Timeline |
| Caledonia Mining |
| Collective Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caledonia Mining and Collective Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caledonia Mining and Collective Mining
The main advantage of trading using opposite Caledonia Mining and Collective Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining position performs unexpectedly, Collective 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 Collective Mining will offset losses from the drop in Collective Mining's long position.| Caledonia Mining vs. DRDGOLD Limited ADR | Caledonia Mining vs. Galiano Gold | Caledonia Mining vs. Mastech Holdings | Caledonia Mining vs. EMX Royalty Corp |
| Collective Mining vs. Aurion Resources | Collective Mining vs. Bluestone Resources | Collective Mining vs. Cartier Resources | Collective Mining vs. Antioquia Gold |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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