Correlation Between Calibre Mining and JERONIMO MARTINS
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and JERONIMO MARTINS 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 JERONIMO MARTINS 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 JERONIMO MARTINS UNADR2, you can compare the effects of market volatilities on Calibre Mining and JERONIMO MARTINS 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 JERONIMO MARTINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and JERONIMO MARTINS.
Diversification Opportunities for Calibre Mining and JERONIMO MARTINS
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calibre and JERONIMO is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and JERONIMO MARTINS UNADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JERONIMO MARTINS UNADR2 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 JERONIMO MARTINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JERONIMO MARTINS UNADR2 has no effect on the direction of Calibre Mining i.e., Calibre Mining and JERONIMO MARTINS go up and down completely randomly.
Pair Corralation between Calibre Mining and JERONIMO MARTINS
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.59 times more return on investment than JERONIMO MARTINS. However, Calibre Mining is 1.59 times more volatile than JERONIMO MARTINS UNADR2. It trades about 0.07 of its potential returns per unit of risk. JERONIMO MARTINS UNADR2 is currently generating about 0.01 per unit of risk. If you would invest 76.00 in Calibre Mining Corp on October 13, 2024 and sell it today you would earn a total of 86.00 from holding Calibre Mining Corp or generate 113.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calibre Mining Corp vs. JERONIMO MARTINS UNADR2
Performance |
| Timeline |
| Calibre Mining Corp |
| JERONIMO MARTINS UNADR2 |
Calibre Mining and JERONIMO MARTINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and JERONIMO MARTINS
The main advantage of trading using opposite Calibre Mining and JERONIMO MARTINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, JERONIMO MARTINS 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 JERONIMO MARTINS will offset losses from the drop in JERONIMO MARTINS's long position.| Calibre Mining vs. MCEWEN MINING INC | Calibre Mining vs. COVIVIO HOTELS INH | Calibre Mining vs. The Hongkong and | Calibre Mining vs. PPHE HOTEL GROUP |
| JERONIMO MARTINS vs. Western Copper and | JERONIMO MARTINS vs. FIREWEED METALS P | JERONIMO MARTINS vs. Calibre Mining Corp | JERONIMO MARTINS vs. Perseus Mining Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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