Correlation Between Calibre Mining and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Lakeland Industries 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 Lakeland Industries 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 Lakeland Industries, you can compare the effects of market volatilities on Calibre Mining and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Lakeland Industries.
Diversification Opportunities for Calibre Mining and Lakeland Industries
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and Lakeland is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Calibre Mining i.e., Calibre Mining and Lakeland Industries go up and down completely randomly.
Pair Corralation between Calibre Mining and Lakeland Industries
Assuming the 90 days trading horizon Calibre Mining is expected to generate 5.6 times less return on investment than Lakeland Industries. But when comparing it to its historical volatility, Calibre Mining Corp is 1.13 times less risky than Lakeland Industries. It trades about 0.01 of its potential returns per unit of risk. Lakeland Industries is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,160 in Lakeland Industries on October 13, 2024 and sell it today you would earn a total of 80.00 from holding Lakeland Industries or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Calibre Mining Corp vs. Lakeland Industries
Performance |
| Timeline |
| Calibre Mining Corp |
| Lakeland Industries |
Calibre Mining and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Lakeland Industries
The main advantage of trading using opposite Calibre Mining and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' 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 |
| Lakeland Industries vs. GRIFFIN MINING LTD | Lakeland Industries vs. OURGAME INTHOLDL 00005 | Lakeland Industries vs. BRAGG GAMING GRP | Lakeland Industries vs. Calibre Mining Corp |
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.
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