Correlation Between Calibre Mining and Nomad Foods
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Nomad Foods 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 Calibre Mining and Nomad Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calibre Mining Corp and Nomad Foods, you can compare the effects of market volatilities on Calibre Mining and Nomad Foods 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 Calibre Mining with a short position of Nomad Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Nomad Foods.
Diversification Opportunities for Calibre Mining and Nomad Foods
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calibre and Nomad is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Nomad Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomad Foods and Calibre Mining 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 Calibre Mining Corp are associated (or correlated) with Nomad Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomad Foods has no effect on the direction of Calibre Mining i.e., Calibre Mining and Nomad Foods go up and down completely randomly.
Pair Corralation between Calibre Mining and Nomad Foods
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 2.07 times more return on investment than Nomad Foods. However, Calibre Mining is 2.07 times more volatile than Nomad Foods. It trades about 0.04 of its potential returns per unit of risk. Nomad Foods is currently generating about -0.1 per unit of risk. If you would invest 165.00 in Calibre Mining Corp on October 11, 2024 and sell it today you would earn a total of 2.00 from holding Calibre Mining Corp or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Nomad Foods
Performance |
| Timeline |
| Calibre Mining Corp |
| Nomad Foods |
Calibre Mining and Nomad Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Nomad Foods
The main advantage of trading using opposite Calibre Mining and Nomad Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Nomad Foods 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 Nomad Foods will offset losses from the drop in Nomad Foods' long position.| Calibre Mining vs. PennantPark Investment | Calibre Mining vs. CVW CLEANTECH INC | Calibre Mining vs. SLR Investment Corp | Calibre Mining vs. Ultra Clean Holdings |
| Nomad Foods vs. Calibre Mining Corp | Nomad Foods vs. GALENA MINING LTD | Nomad Foods vs. ECHO INVESTMENT ZY | Nomad Foods vs. Guangdong Investment Limited |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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