Correlation Between Calibre Mining and CME
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and CME 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 CME 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 CME Group, you can compare the effects of market volatilities on Calibre Mining and CME 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 CME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and CME.
Diversification Opportunities for Calibre Mining and CME
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and CME is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and CME Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CME Group 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 CME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CME Group has no effect on the direction of Calibre Mining i.e., Calibre Mining and CME go up and down completely randomly.
Pair Corralation between Calibre Mining and CME
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 2.55 times more return on investment than CME. However, Calibre Mining is 2.55 times more volatile than CME Group. It trades about 0.25 of its potential returns per unit of risk. CME Group is currently generating about -0.01 per unit of risk. If you would invest 144.00 in Calibre Mining Corp on October 24, 2024 and sell it today you would earn a total of 18.00 from holding Calibre Mining Corp or generate 12.5% 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. CME Group
Performance |
| Timeline |
| Calibre Mining Corp |
| CME Group |
Calibre Mining and CME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and CME
The main advantage of trading using opposite Calibre Mining and CME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, CME 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 CME will offset losses from the drop in CME's long position.| Calibre Mining vs. AOYAMA TRADING | Calibre Mining vs. Apollo Investment Corp | Calibre Mining vs. COLUMBIA SPORTSWEAR | Calibre Mining vs. Air Transport Services |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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