Correlation Between Calibre Mining and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on Calibre Mining and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Haier Smart.
Diversification Opportunities for Calibre Mining and Haier Smart
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calibre and Haier is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Calibre Mining i.e., Calibre Mining and Haier Smart go up and down completely randomly.
Pair Corralation between Calibre Mining and Haier Smart
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.57 times more return on investment than Haier Smart. However, Calibre Mining is 1.57 times more volatile than Haier Smart Home. It trades about 0.07 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.07 per unit of risk. If you would invest 84.00 in Calibre Mining Corp on December 13, 2024 and sell it today you would earn a total of 107.00 from holding Calibre Mining Corp or generate 127.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Haier Smart Home
Performance |
| Timeline |
| Calibre Mining Corp |
| Haier Smart Home |
Calibre Mining and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Haier Smart
The main advantage of trading using opposite Calibre Mining and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Calibre Mining vs. Endeavour Mining PLC | ||
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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