Correlation Between Calibre Mining and Birchtech Corp
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Birchtech Corp 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 Birchtech Corp 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 Birchtech Corp, you can compare the effects of market volatilities on Calibre Mining and Birchtech Corp 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 Birchtech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Birchtech Corp.
Diversification Opportunities for Calibre Mining and Birchtech Corp
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and Birchtech is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Birchtech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birchtech Corp 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 Birchtech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birchtech Corp has no effect on the direction of Calibre Mining i.e., Calibre Mining and Birchtech Corp go up and down completely randomly.
Pair Corralation between Calibre Mining and Birchtech Corp
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 0.73 times more return on investment than Birchtech Corp. However, Calibre Mining Corp is 1.38 times less risky than Birchtech Corp. It trades about -0.01 of its potential returns per unit of risk. Birchtech Corp is currently generating about -0.17 per unit of risk. If you would invest 246.00 in Calibre Mining Corp on October 10, 2024 and sell it today you would lose (4.00) from holding Calibre Mining Corp or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Birchtech Corp
Performance |
| Timeline |
| Calibre Mining Corp |
| Birchtech Corp |
Calibre Mining and Birchtech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Birchtech Corp
The main advantage of trading using opposite Calibre Mining and Birchtech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Birchtech Corp 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 Birchtech Corp will offset losses from the drop in Birchtech Corp's long position.The idea behind Calibre Mining Corp and Birchtech Corp 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.| Birchtech Corp vs. Solid Impact Investments | Birchtech Corp vs. Westshore Terminals Investment | Birchtech Corp vs. Highwood Asset Management | Birchtech Corp vs. CNJ Capital Investments |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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