Correlation Between Calibre Mining and BURLINGTON STORES
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and BURLINGTON 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 BURLINGTON 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 BURLINGTON STORES, you can compare the effects of market volatilities on Calibre Mining and BURLINGTON 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 BURLINGTON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and BURLINGTON STORES.
Diversification Opportunities for Calibre Mining and BURLINGTON STORES
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and BURLINGTON is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and BURLINGTON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BURLINGTON 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 BURLINGTON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BURLINGTON STORES has no effect on the direction of Calibre Mining i.e., Calibre Mining and BURLINGTON STORES go up and down completely randomly.
Pair Corralation between Calibre Mining and BURLINGTON STORES
Assuming the 90 days trading horizon Calibre Mining is expected to generate 1.07 times less return on investment than BURLINGTON STORES. In addition to that, Calibre Mining is 1.27 times more volatile than BURLINGTON STORES. It trades about 0.07 of its total potential returns per unit of risk. BURLINGTON STORES is currently generating about 0.1 per unit of volatility. If you would invest 24,200 in BURLINGTON STORES on September 2, 2024 and sell it today you would earn a total of 3,000 from holding BURLINGTON STORES or generate 12.4% 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. BURLINGTON STORES
Performance |
| Timeline |
| Calibre Mining Corp |
| BURLINGTON STORES |
Calibre Mining and BURLINGTON STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and BURLINGTON STORES
The main advantage of trading using opposite Calibre Mining and BURLINGTON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, BURLINGTON 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 BURLINGTON STORES will offset losses from the drop in BURLINGTON 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 |
| BURLINGTON STORES vs. SIVERS SEMICONDUCTORS AB | BURLINGTON STORES vs. Darden Restaurants | BURLINGTON STORES vs. Reliance Steel Aluminum | BURLINGTON 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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