Correlation Between Calibre Mining and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Yuexiu Transport 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Calibre Mining and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Yuexiu Transport.
Diversification Opportunities for Calibre Mining and Yuexiu Transport
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calibre and Yuexiu is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Calibre Mining i.e., Calibre Mining and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Calibre Mining and Yuexiu Transport
Assuming the 90 days trading horizon Calibre Mining is expected to generate 2.3 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, Calibre Mining Corp is 1.65 times less risky than Yuexiu Transport. It trades about 0.08 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Yuexiu Transport Infrastructure on October 12, 2024 and sell it today you would earn a total of 24.00 from holding Yuexiu Transport Infrastructure or generate 109.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Calibre Mining Corp |
| Yuexiu Transport Inf |
Calibre Mining and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Yuexiu Transport
The main advantage of trading using opposite Calibre Mining and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| Calibre Mining vs. PennantPark Investment | Calibre Mining vs. CVW CLEANTECH INC | Calibre Mining vs. SLR Investment Corp | Calibre Mining vs. Ultra Clean Holdings |
| Yuexiu Transport vs. INTERSHOP Communications Aktiengesellschaft | Yuexiu Transport vs. ecotel communication ag | Yuexiu Transport vs. United Airlines Holdings | Yuexiu Transport vs. THAI BEVERAGE |
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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