Correlation Between Calibre Mining and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on Calibre Mining and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and FEMALE HEALTH.
Diversification Opportunities for Calibre Mining and FEMALE HEALTH
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calibre and FEMALE is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Calibre Mining i.e., Calibre Mining and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Calibre Mining and FEMALE HEALTH
Assuming the 90 days trading horizon Calibre Mining is expected to generate 10.26 times less return on investment than FEMALE HEALTH. But when comparing it to its historical volatility, Calibre Mining Corp is 1.73 times less risky than FEMALE HEALTH. It trades about 0.03 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 55.00 in FEMALE HEALTH on October 17, 2024 and sell it today you would earn a total of 19.00 from holding FEMALE HEALTH or generate 34.55% 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. FEMALE HEALTH
Performance |
| Timeline |
| Calibre Mining Corp |
| FEMALE HEALTH |
Calibre Mining and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and FEMALE HEALTH
The main advantage of trading using opposite Calibre Mining and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Calibre Mining vs. SOLSTAD OFFSHORE NK | Calibre Mining vs. Materialise NV | Calibre Mining vs. Performance Food Group | Calibre Mining vs. Solstad Offshore ASA |
| FEMALE HEALTH vs. ARDAGH METAL PACDL 0001 | FEMALE HEALTH vs. Monument Mining Limited | FEMALE HEALTH vs. DALATA HOTEL | FEMALE HEALTH 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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