Correlation Between SUMMARECON AGUNG and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both SUMMARECON AGUNG 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 SUMMARECON AGUNG and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUMMARECON AGUNG and Calibre Mining Corp, you can compare the effects of market volatilities on SUMMARECON AGUNG 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 SUMMARECON AGUNG with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUMMARECON AGUNG and Calibre Mining.
Diversification Opportunities for SUMMARECON AGUNG and Calibre Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUMMARECON and Calibre is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SUMMARECON AGUNG 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 SUMMARECON AGUNG 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 SUMMARECON AGUNG 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 SUMMARECON AGUNG i.e., SUMMARECON AGUNG and Calibre Mining go up and down completely randomly.
Pair Corralation between SUMMARECON AGUNG and Calibre Mining
Assuming the 90 days trading horizon SUMMARECON AGUNG is expected to under-perform the Calibre Mining. In addition to that, SUMMARECON AGUNG is 2.55 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 0.13 per unit of volatility. If you would invest 145.00 in Calibre Mining Corp on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Calibre Mining Corp or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUMMARECON AGUNG vs. Calibre Mining Corp
Performance |
| Timeline |
| SUMMARECON AGUNG |
| Calibre Mining Corp |
SUMMARECON AGUNG and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUMMARECON AGUNG and Calibre Mining
The main advantage of trading using opposite SUMMARECON AGUNG and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUMMARECON AGUNG 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.| SUMMARECON AGUNG vs. Calibre Mining Corp | SUMMARECON AGUNG vs. Harmony Gold Mining | SUMMARECON AGUNG vs. De Grey Mining | SUMMARECON AGUNG vs. Zijin Mining Group |
| Calibre Mining vs. HAVERTY FURNITURE A | Calibre Mining vs. CAIRN HOMES EO | Calibre Mining vs. DFS Furniture PLC | Calibre Mining vs. Hua Hong Semiconductor |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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