Correlation Between Calibre Mining and JAPAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and JAPAN AIRLINES 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 JAPAN AIRLINES 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 JAPAN AIRLINES, you can compare the effects of market volatilities on Calibre Mining and JAPAN AIRLINES 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 JAPAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and JAPAN AIRLINES.
Diversification Opportunities for Calibre Mining and JAPAN AIRLINES
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calibre and JAPAN is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and JAPAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN AIRLINES 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 JAPAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN AIRLINES has no effect on the direction of Calibre Mining i.e., Calibre Mining and JAPAN AIRLINES go up and down completely randomly.
Pair Corralation between Calibre Mining and JAPAN AIRLINES
Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the JAPAN AIRLINES. In addition to that, Calibre Mining is 2.92 times more volatile than JAPAN AIRLINES. It trades about -0.17 of its total potential returns per unit of risk. JAPAN AIRLINES is currently generating about -0.45 per unit of volatility. If you would invest 1,610 in JAPAN AIRLINES on October 10, 2024 and sell it today you would lose (110.00) from holding JAPAN AIRLINES or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. JAPAN AIRLINES
Performance |
| Timeline |
| Calibre Mining Corp |
| JAPAN AIRLINES |
Calibre Mining and JAPAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and JAPAN AIRLINES
The main advantage of trading using opposite Calibre Mining and JAPAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, JAPAN AIRLINES 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 JAPAN AIRLINES will offset losses from the drop in JAPAN AIRLINES's long position.| Calibre Mining vs. Mitsubishi Materials | Calibre Mining vs. Rayonier Advanced Materials | Calibre Mining vs. Suntory Beverage Food | Calibre Mining vs. BOSTON BEER A |
| JAPAN AIRLINES vs. Wyndham Hotels Resorts | JAPAN AIRLINES vs. CDL INVESTMENT | JAPAN AIRLINES vs. REGAL HOTEL INTL | JAPAN AIRLINES vs. PPHE HOTEL GROUP |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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