Correlation Between Calibre Mining and Caseys General
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on Calibre Mining and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Caseys General.
Diversification Opportunities for Calibre Mining and Caseys General
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and Caseys is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Calibre Mining i.e., Calibre Mining and Caseys General go up and down completely randomly.
Pair Corralation between Calibre Mining and Caseys General
Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the Caseys General. In addition to that, Calibre Mining is 1.42 times more volatile than Caseys General Stores. It trades about 0.0 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.21 per unit of volatility. If you would invest 33,554 in Caseys General Stores on August 31, 2024 and sell it today you would earn a total of 6,046 from holding Caseys General Stores or generate 18.02% 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. Caseys General Stores
Performance |
| Timeline |
| Calibre Mining Corp |
| Caseys General Stores |
Calibre Mining and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Caseys General
The main advantage of trading using opposite Calibre Mining and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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