Correlation Between Chuangs China and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Calibre Mining Corp, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Calibre Mining.
Diversification Opportunities for Chuangs China and Calibre Mining
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chuangs and Calibre is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments 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 Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and Calibre Mining go up and down completely randomly.
Pair Corralation between Chuangs China and Calibre Mining
If you would invest 1.00 in Chuangs China Investments on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. Calibre Mining Corp
Performance |
| Timeline |
| Chuangs China Investments |
| Calibre Mining Corp |
Chuangs China and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Calibre Mining
The main advantage of trading using opposite Chuangs China and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. Superior Plus Corp | Chuangs China vs. NMI Holdings | Chuangs China vs. Origin Agritech | Chuangs China vs. SIVERS SEMICONDUCTORS AB |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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