Correlation Between Calibre Mining and Apple
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Apple 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 Calibre Mining and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calibre Mining Corp and Apple Inc CDR, you can compare the effects of market volatilities on Calibre Mining and Apple 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 Calibre Mining with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Apple.
Diversification Opportunities for Calibre Mining and Apple
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and Apple is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and Calibre 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 Calibre Mining Corp are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc CDR has no effect on the direction of Calibre Mining i.e., Calibre Mining and Apple go up and down completely randomly.
Pair Corralation between Calibre Mining and Apple
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.73 times more return on investment than Apple. However, Calibre Mining is 1.73 times more volatile than Apple Inc CDR. It trades about 0.22 of its potential returns per unit of risk. Apple Inc CDR is currently generating about -0.07 per unit of risk. If you would invest 223.00 in Calibre Mining Corp on November 3, 2024 and sell it today you would earn a total of 36.00 from holding Calibre Mining Corp or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Apple Inc CDR
Performance |
| Timeline |
| Calibre Mining Corp |
| Apple Inc CDR |
Calibre Mining and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Apple
The main advantage of trading using opposite Calibre Mining and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.The idea behind Calibre Mining Corp and Apple Inc CDR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Apple vs. MTY Food Group | Apple vs. Maple Leaf Foods | Apple vs. Leading Edge Materials | Apple vs. Verizon Communications CDR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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