Correlation Between Calibre Mining and Autodesk
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Autodesk 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 Autodesk 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 Autodesk, you can compare the effects of market volatilities on Calibre Mining and Autodesk 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 Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Autodesk.
Diversification Opportunities for Calibre Mining and Autodesk
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calibre and Autodesk is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk 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 Autodesk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autodesk has no effect on the direction of Calibre Mining i.e., Calibre Mining and Autodesk go up and down completely randomly.
Pair Corralation between Calibre Mining and Autodesk
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.47 times more return on investment than Autodesk. However, Calibre Mining is 1.47 times more volatile than Autodesk. It trades about 0.08 of its potential returns per unit of risk. Autodesk is currently generating about 0.04 per unit of risk. If you would invest 72.00 in Calibre Mining Corp on November 6, 2024 and sell it today you would earn a total of 102.00 from holding Calibre Mining Corp or generate 141.67% 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. Autodesk
Performance |
| Timeline |
| Calibre Mining Corp |
| Autodesk |
Calibre Mining and Autodesk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Autodesk
The main advantage of trading using opposite Calibre Mining and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Autodesk 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 Autodesk will offset losses from the drop in Autodesk's long position.| Calibre Mining vs. Mitsui Chemicals | Calibre Mining vs. Fidelity National Information | Calibre Mining vs. Silicon Motion Technology | Calibre Mining vs. MICRONIC MYDATA |
| Autodesk vs. SALESFORCE INC CDR | Autodesk vs. Salesforce | Autodesk vs. De Grey Mining | Autodesk vs. MINCO SILVER |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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