Correlation Between Calibre Mining and CHRYSALIS INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD, you can compare the effects of market volatilities on Calibre Mining and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and CHRYSALIS INVESTMENTS.
Diversification Opportunities for Calibre Mining and CHRYSALIS INVESTMENTS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and CHRYSALIS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and CHRYSALIS INVESTMENTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHRYSALIS INVESTMENTS LTD 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 CHRYSALIS INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHRYSALIS INVESTMENTS LTD has no effect on the direction of Calibre Mining i.e., Calibre Mining and CHRYSALIS INVESTMENTS go up and down completely randomly.
Pair Corralation between Calibre Mining and CHRYSALIS INVESTMENTS
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.22 times more return on investment than CHRYSALIS INVESTMENTS. However, Calibre Mining is 1.22 times more volatile than CHRYSALIS INVESTMENTS LTD. It trades about 0.1 of its potential returns per unit of risk. CHRYSALIS INVESTMENTS LTD is currently generating about 0.06 per unit of risk. If you would invest 84.00 in Calibre Mining Corp on October 20, 2024 and sell it today you would earn a total of 70.00 from holding Calibre Mining Corp or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. CHRYSALIS INVESTMENTS LTD
Performance |
| Timeline |
| Calibre Mining Corp |
| CHRYSALIS INVESTMENTS LTD |
Calibre Mining and CHRYSALIS INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and CHRYSALIS INVESTMENTS
The main advantage of trading using opposite Calibre Mining and CHRYSALIS INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS will offset losses from the drop in CHRYSALIS INVESTMENTS's long position.| Calibre Mining vs. Sterling Construction | Calibre Mining vs. Granite Construction | Calibre Mining vs. KENEDIX OFFICE INV | Calibre Mining vs. Australian Agricultural |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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