Correlation Between Equinox Gold and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Equinox 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 Equinox 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 Equinox Gold Corp and Calibre Mining Corp, you can compare the effects of market volatilities on Equinox 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 Equinox Gold with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Calibre Mining.
Diversification Opportunities for Equinox Gold and Calibre Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Equinox and Calibre is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp 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 Equinox 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 Equinox Gold Corp 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 Equinox Gold i.e., Equinox Gold and Calibre Mining go up and down completely randomly.
Pair Corralation between Equinox Gold and Calibre Mining
Assuming the 90 days trading horizon Equinox Gold Corp is expected to generate 1.35 times more return on investment than Calibre Mining. However, Equinox Gold is 1.35 times more volatile than Calibre Mining Corp. It trades about 0.0 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.15 per unit of risk. If you would invest 813.00 in Equinox Gold Corp on August 25, 2024 and sell it today you would lose (13.00) from holding Equinox Gold Corp or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Calibre Mining Corp
Performance |
| Timeline |
| Equinox Gold Corp |
| Calibre Mining Corp |
Equinox Gold and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Calibre Mining
The main advantage of trading using opposite Equinox Gold and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox 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.| Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver | Equinox Gold vs. SSR Mining | Equinox Gold vs. SilverCrest 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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