Correlation Between Calibre Mining and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on Calibre Mining and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Marie Brizard.
Diversification Opportunities for Calibre Mining and Marie Brizard
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calibre and Marie is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Calibre Mining i.e., Calibre Mining and Marie Brizard go up and down completely randomly.
Pair Corralation between Calibre Mining and Marie Brizard
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.84 times more return on investment than Marie Brizard. However, Calibre Mining is 1.84 times more volatile than Marie Brizard Wine. It trades about 0.08 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.08 per unit of risk. If you would invest 61.00 in Calibre Mining Corp on August 24, 2024 and sell it today you would earn a total of 99.00 from holding Calibre Mining Corp or generate 162.3% 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. Marie Brizard Wine
Performance |
| Timeline |
| Calibre Mining Corp |
| Marie Brizard Wine |
Calibre Mining and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Marie Brizard
The main advantage of trading using opposite Calibre Mining and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
| Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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