Correlation Between Check Point and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Check Point 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 Check Point and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and Calibre Mining Corp, you can compare the effects of market volatilities on Check Point 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 Check Point with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Calibre Mining.
Diversification Opportunities for Check Point and Calibre Mining
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Check and Calibre is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software 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 Check Point 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 Check Point Software 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 Check Point i.e., Check Point and Calibre Mining go up and down completely randomly.
Pair Corralation between Check Point and Calibre Mining
Assuming the 90 days trading horizon Check Point Software is expected to under-perform the Calibre Mining. In addition to that, Check Point is 1.31 times more volatile than Calibre Mining Corp. It trades about -0.13 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.1 per unit of volatility. If you would invest 171.00 in Calibre Mining Corp on August 28, 2024 and sell it today you would lose (10.00) from holding Calibre Mining Corp or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Check Point Software vs. Calibre Mining Corp
Performance |
| Timeline |
| Check Point Software |
| Calibre Mining Corp |
Check Point and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and Calibre Mining
The main advantage of trading using opposite Check Point and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point 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.| Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Microsoft |
| Calibre Mining vs. Amkor Technology | Calibre Mining vs. Evolution Mining Limited | Calibre Mining vs. THORNEY TECHS LTD | Calibre Mining vs. LION ONE METALS |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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