Correlation Between Calibre Mining and Bilfinger
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Bilfinger 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 Bilfinger 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 Bilfinger SE, you can compare the effects of market volatilities on Calibre Mining and Bilfinger 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 Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Bilfinger.
Diversification Opportunities for Calibre Mining and Bilfinger
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calibre and Bilfinger is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Bilfinger SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilfinger SE 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 Bilfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilfinger SE has no effect on the direction of Calibre Mining i.e., Calibre Mining and Bilfinger go up and down completely randomly.
Pair Corralation between Calibre Mining and Bilfinger
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 2.74 times more return on investment than Bilfinger. However, Calibre Mining is 2.74 times more volatile than Bilfinger SE. It trades about 0.16 of its potential returns per unit of risk. Bilfinger SE is currently generating about 0.01 per unit of risk. If you would invest 144.00 in Calibre Mining Corp on October 22, 2024 and sell it today you would earn a total of 10.00 from holding Calibre Mining Corp or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Bilfinger SE
Performance |
| Timeline |
| Calibre Mining Corp |
| Bilfinger SE |
Calibre Mining and Bilfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Bilfinger
The main advantage of trading using opposite Calibre Mining and Bilfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Bilfinger 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 Bilfinger will offset losses from the drop in Bilfinger's long position.| Calibre Mining vs. SAN MIGUEL BREWERY | Calibre Mining vs. BOSTON BEER A | Calibre Mining vs. CDN IMPERIAL BANK | Calibre Mining vs. Direct Line Insurance |
| Bilfinger vs. MTY Food Group | Bilfinger vs. PNC Financial Services | Bilfinger vs. Ameriprise Financial | Bilfinger vs. United Insurance Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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