Correlation Between Red Pine and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Red Pine 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 Red Pine and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Pine Exploration and Calibre Mining Corp, you can compare the effects of market volatilities on Red Pine 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 Red Pine with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Pine and Calibre Mining.
Diversification Opportunities for Red Pine and Calibre Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Red and Calibre is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Red Pine Exploration 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 Red Pine 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 Red Pine Exploration 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 Red Pine i.e., Red Pine and Calibre Mining go up and down completely randomly.
Pair Corralation between Red Pine and Calibre Mining
Assuming the 90 days horizon Red Pine Exploration is expected to under-perform the Calibre Mining. In addition to that, Red Pine is 1.42 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 0.24 per unit of volatility. If you would invest 157.00 in Calibre Mining Corp on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Calibre Mining Corp or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Red Pine Exploration vs. Calibre Mining Corp
Performance |
| Timeline |
| Red Pine Exploration |
| Calibre Mining Corp |
Red Pine and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Pine and Calibre Mining
The main advantage of trading using opposite Red Pine and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Pine 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.| Red Pine vs. Endurance Gold | Red Pine vs. Altamira Gold Corp | Red Pine vs. Grande Portage Resources | Red Pine vs. Tectonic Metals |
| Calibre Mining vs. Antioquia Gold | Calibre Mining vs. Red Pine Exploration | Calibre Mining vs. Cerrado Gold | Calibre Mining vs. Aurion Resources |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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