Correlation Between Calibre Mining and BANK RAKYAT
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and BANK RAKYAT 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 BANK RAKYAT 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 BANK RAKYAT IND, you can compare the effects of market volatilities on Calibre Mining and BANK RAKYAT 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 BANK RAKYAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and BANK RAKYAT.
Diversification Opportunities for Calibre Mining and BANK RAKYAT
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calibre and BANK is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and BANK RAKYAT IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK RAKYAT IND 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 BANK RAKYAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK RAKYAT IND has no effect on the direction of Calibre Mining i.e., Calibre Mining and BANK RAKYAT go up and down completely randomly.
Pair Corralation between Calibre Mining and BANK RAKYAT
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.03 times more return on investment than BANK RAKYAT. However, Calibre Mining is 1.03 times more volatile than BANK RAKYAT IND. It trades about 0.18 of its potential returns per unit of risk. BANK RAKYAT IND is currently generating about 0.01 per unit of risk. If you would invest 144.00 in Calibre Mining Corp on October 23, 2024 and sell it today you would earn a total of 12.00 from holding Calibre Mining Corp or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. BANK RAKYAT IND
Performance |
| Timeline |
| Calibre Mining Corp |
| BANK RAKYAT IND |
Calibre Mining and BANK RAKYAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and BANK RAKYAT
The main advantage of trading using opposite Calibre Mining and BANK RAKYAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, BANK RAKYAT 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 BANK RAKYAT will offset losses from the drop in BANK RAKYAT's long position.| Calibre Mining vs. Jupiter Fund Management | Calibre Mining vs. DISTRICT METALS | Calibre Mining vs. GREENX METALS LTD | Calibre Mining vs. ADRIATIC METALS LS 013355 |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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