Correlation Between Calibre Mining and Welltower
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Welltower 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 Welltower 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 Welltower, you can compare the effects of market volatilities on Calibre Mining and Welltower 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 Welltower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Welltower.
Diversification Opportunities for Calibre Mining and Welltower
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and Welltower is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Welltower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welltower 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 Welltower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welltower has no effect on the direction of Calibre Mining i.e., Calibre Mining and Welltower go up and down completely randomly.
Pair Corralation between Calibre Mining and Welltower
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 2.87 times more return on investment than Welltower. However, Calibre Mining is 2.87 times more volatile than Welltower. It trades about 0.16 of its potential returns per unit of risk. Welltower is currently generating about 0.35 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Welltower
Performance |
| Timeline |
| Calibre Mining Corp |
| Welltower |
Calibre Mining and Welltower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Welltower
The main advantage of trading using opposite Calibre Mining and Welltower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Welltower 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 Welltower will offset losses from the drop in Welltower'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 |
| Welltower vs. ETFS Coffee ETC | Welltower vs. Constellation Software | Welltower vs. MCEWEN MINING INC | Welltower vs. MINCO SILVER |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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