Correlation Between Calibre Mining and Check Point
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Check Point 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 Check Point 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 Check Point Software, you can compare the effects of market volatilities on Calibre Mining and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Check Point.
Diversification Opportunities for Calibre Mining and Check Point
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calibre and Check is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of Calibre Mining i.e., Calibre Mining and Check Point go up and down completely randomly.
Pair Corralation between Calibre Mining and Check Point
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 0.76 times more return on investment than Check Point. However, Calibre Mining Corp is 1.31 times less risky than Check Point. It trades about -0.1 of its potential returns per unit of risk. Check Point Software is currently generating about -0.13 per unit of risk. If you would invest 171.00 in Calibre Mining Corp on August 28, 2024 and sell it today you would lose (10.00) from holding Calibre Mining Corp or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Check Point Software
Performance |
| Timeline |
| Calibre Mining Corp |
| Check Point Software |
Calibre Mining and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Check Point
The main advantage of trading using opposite Calibre Mining and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.| Calibre Mining vs. Amkor Technology | Calibre Mining vs. Evolution Mining Limited | Calibre Mining vs. THORNEY TECHS LTD | Calibre Mining vs. LION ONE METALS |
| Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Microsoft |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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