Correlation Between Calibre Mining and Altair Engineering
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Altair Engineering 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 Altair Engineering 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 Altair Engineering, you can compare the effects of market volatilities on Calibre Mining and Altair Engineering 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 Altair Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Altair Engineering.
Diversification Opportunities for Calibre Mining and Altair Engineering
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calibre and Altair is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Altair Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering 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 Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of Calibre Mining i.e., Calibre Mining and Altair Engineering go up and down completely randomly.
Pair Corralation between Calibre Mining and Altair Engineering
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.41 times more return on investment than Altair Engineering. However, Calibre Mining is 1.41 times more volatile than Altair Engineering. It trades about 0.08 of its potential returns per unit of risk. Altair Engineering is currently generating about 0.08 per unit of risk. If you would invest 60.00 in Calibre Mining Corp on September 3, 2024 and sell it today you would earn a total of 108.00 from holding Calibre Mining Corp or generate 180.0% 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. Altair Engineering
Performance |
| Timeline |
| Calibre Mining Corp |
| Altair Engineering |
Calibre Mining and Altair Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Altair Engineering
The main advantage of trading using opposite Calibre Mining and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Altair Engineering 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 Altair Engineering will offset losses from the drop in Altair Engineering's long position.| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
| Altair Engineering vs. Microsoft | Altair Engineering vs. CrowdStrike Holdings | Altair Engineering vs. VeriSign | Altair Engineering vs. Palantir Technologies |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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