Correlation Between Jamieson Wellness and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Jamieson Wellness 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 Jamieson Wellness and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jamieson Wellness and Calibre Mining Corp, you can compare the effects of market volatilities on Jamieson Wellness 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 Jamieson Wellness with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jamieson Wellness and Calibre Mining.
Diversification Opportunities for Jamieson Wellness and Calibre Mining
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jamieson and Calibre is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jamieson Wellness 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 Jamieson Wellness 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 Jamieson Wellness 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 Jamieson Wellness i.e., Jamieson Wellness and Calibre Mining go up and down completely randomly.
Pair Corralation between Jamieson Wellness and Calibre Mining
Assuming the 90 days trading horizon Jamieson Wellness is expected to under-perform the Calibre Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jamieson Wellness is 2.25 times less risky than Calibre Mining. The stock trades about -0.23 of its potential returns per unit of risk. The Calibre Mining Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Calibre Mining Corp on November 6, 2024 and sell it today you would earn a total of 39.00 from holding Calibre Mining Corp or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jamieson Wellness vs. Calibre Mining Corp
Performance |
| Timeline |
| Jamieson Wellness |
| Calibre Mining Corp |
Jamieson Wellness and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jamieson Wellness and Calibre Mining
The main advantage of trading using opposite Jamieson Wellness and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jamieson Wellness 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.| Jamieson Wellness vs. Enghouse Systems | Jamieson Wellness vs. Kinaxis | Jamieson Wellness vs. Waste Connections | Jamieson Wellness vs. Open Text Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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