Correlation Between Calibre Mining and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Algonquin Power 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 Algonquin Power 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 Algonquin Power Utilities, you can compare the effects of market volatilities on Calibre Mining and Algonquin Power 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 Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Algonquin Power.
Diversification Opportunities for Calibre Mining and Algonquin Power
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calibre and Algonquin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities 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 Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of Calibre Mining i.e., Calibre Mining and Algonquin Power go up and down completely randomly.
Pair Corralation between Calibre Mining and Algonquin Power
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.55 times more return on investment than Algonquin Power. However, Calibre Mining is 1.55 times more volatile than Algonquin Power Utilities. It trades about 0.08 of its potential returns per unit of risk. Algonquin Power Utilities is currently generating about -0.02 per unit of risk. If you would invest 65.00 in Calibre Mining Corp on August 28, 2024 and sell it today you would earn a total of 96.00 from holding Calibre Mining Corp or generate 147.69% 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. Algonquin Power Utilities
Performance |
| Timeline |
| Calibre Mining Corp |
| Algonquin Power Utilities |
Calibre Mining and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Algonquin Power
The main advantage of trading using opposite Calibre Mining and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.| Calibre Mining vs. Amkor Technology | Calibre Mining vs. Evolution Mining Limited | Calibre Mining vs. THORNEY TECHS LTD | Calibre Mining vs. LION ONE METALS |
| Algonquin Power vs. Bausch Health Companies | Algonquin Power vs. YOOMA WELLNESS INC | Algonquin Power vs. Boyd Gaming | Algonquin Power vs. NORDHEALTH AS NK |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |