Correlation Between Calibre Mining and Smurfit Kappa
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Smurfit Kappa 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 Smurfit Kappa 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 Smurfit Kappa Group, you can compare the effects of market volatilities on Calibre Mining and Smurfit Kappa 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 Smurfit Kappa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Smurfit Kappa.
Diversification Opportunities for Calibre Mining and Smurfit Kappa
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calibre and Smurfit is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Smurfit Kappa Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smurfit Kappa 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 Smurfit Kappa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smurfit Kappa Group has no effect on the direction of Calibre Mining i.e., Calibre Mining and Smurfit Kappa go up and down completely randomly.
Pair Corralation between Calibre Mining and Smurfit Kappa
Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the Smurfit Kappa. In addition to that, Calibre Mining is 1.5 times more volatile than Smurfit Kappa Group. It trades about -0.12 of its total potential returns per unit of risk. Smurfit Kappa Group is currently generating about -0.14 per unit of volatility. If you would invest 5,370 in Smurfit Kappa Group on September 22, 2024 and sell it today you would lose (280.00) from holding Smurfit Kappa Group or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Smurfit Kappa Group
Performance |
| Timeline |
| Calibre Mining Corp |
| Smurfit Kappa Group |
Calibre Mining and Smurfit Kappa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Smurfit Kappa
The main advantage of trading using opposite Calibre Mining and Smurfit Kappa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Smurfit Kappa 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 Smurfit Kappa will offset losses from the drop in Smurfit Kappa's long position.| Calibre Mining vs. ARISTOCRAT LEISURE | Calibre Mining vs. Playtech plc | Calibre Mining vs. KOOL2PLAY SA ZY | Calibre Mining vs. PLAY2CHILL SA ZY |
| Smurfit Kappa vs. GALENA MINING LTD | Smurfit Kappa vs. MAGNUM MINING EXP | Smurfit Kappa vs. Calibre Mining Corp | Smurfit Kappa vs. Tencent Music Entertainment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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