Correlation Between Cerrado Gold and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Cerrado Gold 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 Cerrado Gold and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerrado Gold and Calibre Mining Corp, you can compare the effects of market volatilities on Cerrado Gold 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 Cerrado Gold with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerrado Gold and Calibre Mining.
Diversification Opportunities for Cerrado Gold and Calibre Mining
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cerrado and Calibre is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cerrado Gold 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 Cerrado Gold 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 Cerrado Gold 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 Cerrado Gold i.e., Cerrado Gold and Calibre Mining go up and down completely randomly.
Pair Corralation between Cerrado Gold and Calibre Mining
Assuming the 90 days horizon Cerrado Gold is expected to generate 5.15 times less return on investment than Calibre Mining. In addition to that, Cerrado Gold is 2.05 times more volatile than Calibre Mining Corp. It trades about 0.02 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.24 per unit of volatility. If you would invest 157.00 in Calibre Mining Corp on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Calibre Mining Corp or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cerrado Gold vs. Calibre Mining Corp
Performance |
| Timeline |
| Cerrado Gold |
| Calibre Mining Corp |
Cerrado Gold and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerrado Gold and Calibre Mining
The main advantage of trading using opposite Cerrado Gold and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerrado Gold 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.| Cerrado Gold vs. Revival Gold | Cerrado Gold vs. Galiano Gold | Cerrado Gold vs. US Gold Corp | Cerrado Gold vs. HUMANA INC |
| Calibre Mining vs. Antioquia Gold | Calibre Mining vs. Red Pine Exploration | Calibre Mining vs. Cerrado Gold | Calibre Mining vs. Aurion Resources |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |