Correlation Between SBI Insurance and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both SBI Insurance 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 SBI Insurance and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and Calibre Mining Corp, you can compare the effects of market volatilities on SBI Insurance 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 SBI Insurance with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and Calibre Mining.
Diversification Opportunities for SBI Insurance and Calibre Mining
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBI and Calibre is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group 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 SBI Insurance 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 SBI Insurance Group 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 SBI Insurance i.e., SBI Insurance and Calibre Mining go up and down completely randomly.
Pair Corralation between SBI Insurance and Calibre Mining
Assuming the 90 days trading horizon SBI Insurance is expected to generate 3.83 times less return on investment than Calibre Mining. But when comparing it to its historical volatility, SBI Insurance Group is 2.11 times less risky than Calibre Mining. It trades about 0.17 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 142.00 in Calibre Mining Corp on October 26, 2024 and sell it today you would earn a total of 23.00 from holding Calibre Mining Corp or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. Calibre Mining Corp
Performance |
| Timeline |
| SBI Insurance Group |
| Calibre Mining Corp |
SBI Insurance and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and Calibre Mining
The main advantage of trading using opposite SBI Insurance and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance 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.| SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc |
| Calibre Mining vs. Television Broadcasts Limited | Calibre Mining vs. SBI Insurance Group | Calibre Mining vs. Selective Insurance Group | Calibre Mining vs. Broadridge Financial Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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