Correlation Between Calibre Mining and NVIDIA
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and NVIDIA 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 NVIDIA 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 NVIDIA, you can compare the effects of market volatilities on Calibre Mining and NVIDIA 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 NVIDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and NVIDIA.
Diversification Opportunities for Calibre Mining and NVIDIA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and NVIDIA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and NVIDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA 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 NVIDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA has no effect on the direction of Calibre Mining i.e., Calibre Mining and NVIDIA go up and down completely randomly.
Pair Corralation between Calibre Mining and NVIDIA
Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the NVIDIA. In addition to that, Calibre Mining is 1.13 times more volatile than NVIDIA. It trades about -0.03 of its total potential returns per unit of risk. NVIDIA is currently generating about 0.1 per unit of volatility. If you would invest 13,078 in NVIDIA on October 11, 2024 and sell it today you would earn a total of 552.00 from holding NVIDIA or generate 4.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 94.44% |
Values | Daily Returns |
Calibre Mining Corp vs. NVIDIA
Performance |
Timeline |
Calibre Mining Corp |
NVIDIA |
Calibre Mining and NVIDIA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calibre Mining and NVIDIA
The main advantage of trading using opposite Calibre Mining and NVIDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, NVIDIA 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 NVIDIA will offset losses from the drop in NVIDIA's long position.Calibre Mining vs. PennantPark Investment | Calibre Mining vs. CVW CLEANTECH INC | Calibre Mining vs. SLR Investment Corp | Calibre Mining vs. Ultra Clean Holdings |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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