Correlation Between Calibre Mining and International Consolidated
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and International Consolidated 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 International Consolidated 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 International Consolidated Airlines, you can compare the effects of market volatilities on Calibre Mining and International Consolidated 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 International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and International Consolidated.
Diversification Opportunities for Calibre Mining and International Consolidated
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calibre and International is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated 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 International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of Calibre Mining i.e., Calibre Mining and International Consolidated go up and down completely randomly.
Pair Corralation between Calibre Mining and International Consolidated
Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the International Consolidated. In addition to that, Calibre Mining is 1.09 times more volatile than International Consolidated Airlines. It trades about -0.04 of its total potential returns per unit of risk. International Consolidated Airlines is currently generating about 0.3 per unit of volatility. If you would invest 256.00 in International Consolidated Airlines on August 29, 2024 and sell it today you would earn a total of 42.00 from holding International Consolidated Airlines or generate 16.41% 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. International Consolidated Air
Performance |
| Timeline |
| Calibre Mining Corp |
| International Consolidated |
Calibre Mining and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and International Consolidated
The main advantage of trading using opposite Calibre Mining and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.| Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc | Calibre Mining vs. Apple Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |