Correlation Between Lion One and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Calibre Mining Corp, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Calibre Mining.
Diversification Opportunities for Lion One and Calibre Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lion and Calibre is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals 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 Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Calibre Mining go up and down completely randomly.
Pair Corralation between Lion One and Calibre Mining
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Calibre Mining. In addition to that, Lion One is 1.64 times more volatile than Calibre Mining Corp. It trades about -0.06 of its total potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.08 per unit of volatility. If you would invest 137.00 in Calibre Mining Corp on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Calibre Mining Corp or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Calibre Mining Corp
Performance |
| Timeline |
| Lion One Metals |
| Calibre Mining Corp |
Lion One and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Calibre Mining
The main advantage of trading using opposite Lion One and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. British American Tobacco | Lion One vs. GREENX METALS LTD | Lion One vs. Scandinavian Tobacco Group | Lion One vs. ADRIATIC METALS LS 013355 |
| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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