Correlation Between Calibre Mining and AEON STORES
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and AEON STORES 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 AEON STORES 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 AEON STORES, you can compare the effects of market volatilities on Calibre Mining and AEON STORES 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 AEON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and AEON STORES.
Diversification Opportunities for Calibre Mining and AEON STORES
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and AEON is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and AEON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON STORES 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 AEON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON STORES has no effect on the direction of Calibre Mining i.e., Calibre Mining and AEON STORES go up and down completely randomly.
Pair Corralation between Calibre Mining and AEON STORES
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 7.66 times more return on investment than AEON STORES. However, Calibre Mining is 7.66 times more volatile than AEON STORES. It trades about 0.07 of its potential returns per unit of risk. AEON STORES is currently generating about -0.22 per unit of risk. If you would invest 152.00 in Calibre Mining Corp on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Calibre Mining Corp or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. AEON STORES
Performance |
| Timeline |
| Calibre Mining Corp |
| AEON STORES |
Calibre Mining and AEON STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and AEON STORES
The main advantage of trading using opposite Calibre Mining and AEON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, AEON STORES 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 AEON STORES will offset losses from the drop in AEON STORES's long position.| Calibre Mining vs. JSC Halyk bank | Calibre Mining vs. Webster Financial | Calibre Mining vs. Japan Asia Investment | Calibre Mining vs. Mizuho Financial Group |
| AEON STORES vs. SIVERS SEMICONDUCTORS AB | AEON STORES vs. Darden Restaurants | AEON STORES vs. Reliance Steel Aluminum | AEON STORES vs. Q2M Managementberatung AG |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |