Correlation Between Calibre Mining and CAIRN HOMES
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and CAIRN HOMES 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 CAIRN HOMES 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 CAIRN HOMES EO, you can compare the effects of market volatilities on Calibre Mining and CAIRN HOMES 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 CAIRN HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and CAIRN HOMES.
Diversification Opportunities for Calibre Mining and CAIRN HOMES
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calibre and CAIRN is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and CAIRN HOMES EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIRN HOMES EO 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 CAIRN HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIRN HOMES EO has no effect on the direction of Calibre Mining i.e., Calibre Mining and CAIRN HOMES go up and down completely randomly.
Pair Corralation between Calibre Mining and CAIRN HOMES
Assuming the 90 days trading horizon Calibre Mining is expected to generate 1.29 times less return on investment than CAIRN HOMES. In addition to that, Calibre Mining is 1.3 times more volatile than CAIRN HOMES EO. It trades about 0.06 of its total potential returns per unit of risk. CAIRN HOMES EO is currently generating about 0.1 per unit of volatility. If you would invest 107.00 in CAIRN HOMES EO on October 16, 2024 and sell it today you would earn a total of 118.00 from holding CAIRN HOMES EO or generate 110.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. CAIRN HOMES EO
Performance |
| Timeline |
| Calibre Mining Corp |
| CAIRN HOMES EO |
Calibre Mining and CAIRN HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and CAIRN HOMES
The main advantage of trading using opposite Calibre Mining and CAIRN HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, CAIRN HOMES 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 CAIRN HOMES will offset losses from the drop in CAIRN HOMES's long position.| Calibre Mining vs. Kingdee International Software | Calibre Mining vs. Sixt Leasing SE | Calibre Mining vs. COLUMBIA SPORTSWEAR | Calibre Mining vs. InPlay Oil Corp |
| CAIRN HOMES vs. QINGCI GAMES INC | CAIRN HOMES vs. Harmony Gold Mining | CAIRN HOMES vs. GigaMedia | CAIRN HOMES vs. Calibre Mining Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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