Correlation Between JAPAN AIRLINES and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both JAPAN AIRLINES 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 JAPAN AIRLINES and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAPAN AIRLINES and Calibre Mining Corp, you can compare the effects of market volatilities on JAPAN AIRLINES 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 JAPAN AIRLINES with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN AIRLINES and Calibre Mining.
Diversification Opportunities for JAPAN AIRLINES and Calibre Mining
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between JAPAN and Calibre is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN AIRLINES 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 JAPAN AIRLINES 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 JAPAN AIRLINES 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 JAPAN AIRLINES i.e., JAPAN AIRLINES and Calibre Mining go up and down completely randomly.
Pair Corralation between JAPAN AIRLINES and Calibre Mining
Assuming the 90 days trading horizon JAPAN AIRLINES is expected to under-perform the Calibre Mining. But the stock apears to be less risky and, when comparing its historical volatility, JAPAN AIRLINES is 2.04 times less risky than Calibre Mining. The stock trades about -0.05 of its potential returns per unit of risk. The Calibre Mining Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Calibre Mining Corp on October 25, 2024 and sell it today you would earn a total of 44.00 from holding Calibre Mining Corp or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAPAN AIRLINES vs. Calibre Mining Corp
Performance |
| Timeline |
| JAPAN AIRLINES |
| Calibre Mining Corp |
JAPAN AIRLINES and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAN AIRLINES and Calibre Mining
The main advantage of trading using opposite JAPAN AIRLINES and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN AIRLINES 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.| JAPAN AIRLINES vs. Cognizant Technology Solutions | JAPAN AIRLINES vs. UPDATE SOFTWARE | JAPAN AIRLINES vs. X FAB Silicon Foundries | JAPAN AIRLINES vs. PKSHA TECHNOLOGY INC |
| Calibre Mining vs. CARSALESCOM | Calibre Mining vs. Yuexiu Transport Infrastructure | Calibre Mining vs. GEAR4MUSIC LS 10 | Calibre Mining vs. CarsalesCom |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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