Correlation Between Calibre Mining and ESSILORLUXOTTICA
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and ESSILORLUXOTTICA 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 ESSILORLUXOTTICA 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 ESSILORLUXOTTICA 12ON, you can compare the effects of market volatilities on Calibre Mining and ESSILORLUXOTTICA 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 ESSILORLUXOTTICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and ESSILORLUXOTTICA.
Diversification Opportunities for Calibre Mining and ESSILORLUXOTTICA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and ESSILORLUXOTTICA is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and ESSILORLUXOTTICA 12ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESSILORLUXOTTICA 12ON 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 ESSILORLUXOTTICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESSILORLUXOTTICA 12ON has no effect on the direction of Calibre Mining i.e., Calibre Mining and ESSILORLUXOTTICA go up and down completely randomly.
Pair Corralation between Calibre Mining and ESSILORLUXOTTICA
Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the ESSILORLUXOTTICA. In addition to that, Calibre Mining is 2.1 times more volatile than ESSILORLUXOTTICA 12ON. It trades about -0.1 of its total potential returns per unit of risk. ESSILORLUXOTTICA 12ON is currently generating about 0.28 per unit of volatility. If you would invest 10,800 in ESSILORLUXOTTICA 12ON on August 28, 2024 and sell it today you would earn a total of 800.00 from holding ESSILORLUXOTTICA 12ON or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. ESSILORLUXOTTICA 12ON
Performance |
| Timeline |
| Calibre Mining Corp |
| ESSILORLUXOTTICA 12ON |
Calibre Mining and ESSILORLUXOTTICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and ESSILORLUXOTTICA
The main advantage of trading using opposite Calibre Mining and ESSILORLUXOTTICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, ESSILORLUXOTTICA 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 ESSILORLUXOTTICA will offset losses from the drop in ESSILORLUXOTTICA'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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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