Correlation Between Calibre Mining and Russel Metals
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Russel Metals 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 Russel Metals 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 Russel Metals, you can compare the effects of market volatilities on Calibre Mining and Russel Metals 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 Russel Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Russel Metals.
Diversification Opportunities for Calibre Mining and Russel Metals
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calibre and Russel is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Russel Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Russel Metals 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 Russel Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russel Metals has no effect on the direction of Calibre Mining i.e., Calibre Mining and Russel Metals go up and down completely randomly.
Pair Corralation between Calibre Mining and Russel Metals
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 3.14 times more return on investment than Russel Metals. However, Calibre Mining is 3.14 times more volatile than Russel Metals. It trades about 0.16 of its potential returns per unit of risk. Russel Metals is currently generating about -0.19 per unit of risk. If you would invest 144.00 in Calibre Mining Corp on October 22, 2024 and sell it today you would earn a total of 10.00 from holding Calibre Mining Corp or generate 6.94% 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. Russel Metals
Performance |
Timeline |
Calibre Mining Corp |
Russel Metals |
Calibre Mining and Russel Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calibre Mining and Russel Metals
The main advantage of trading using opposite Calibre Mining and Russel Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Russel Metals 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 Russel Metals will offset losses from the drop in Russel Metals' long position.Calibre Mining vs. SAN MIGUEL BREWERY | Calibre Mining vs. BOSTON BEER A | Calibre Mining vs. CDN IMPERIAL BANK | Calibre Mining vs. Direct Line Insurance |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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