Correlation Between Calibre Mining and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor Corp, you can compare the effects of market volatilities on Calibre Mining and MagnaChip Semiconductor 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 MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and MagnaChip Semiconductor.
Diversification Opportunities for Calibre Mining and MagnaChip Semiconductor
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calibre and MagnaChip is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and MagnaChip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor 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 MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of Calibre Mining i.e., Calibre Mining and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between Calibre Mining and MagnaChip Semiconductor
Assuming the 90 days trading horizon Calibre Mining is expected to generate 11.42 times less return on investment than MagnaChip Semiconductor. In addition to that, Calibre Mining is 1.01 times more volatile than MagnaChip Semiconductor Corp. It trades about 0.0 of its total potential returns per unit of risk. MagnaChip Semiconductor Corp is currently generating about 0.02 per unit of volatility. If you would invest 378.00 in MagnaChip Semiconductor Corp on October 16, 2024 and sell it today you would earn a total of 2.00 from holding MagnaChip Semiconductor Corp or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Calibre Mining Corp vs. MagnaChip Semiconductor Corp
Performance |
| Timeline |
| Calibre Mining Corp |
| MagnaChip Semiconductor |
Calibre Mining and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and MagnaChip Semiconductor
The main advantage of trading using opposite Calibre Mining and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.| Calibre Mining vs. SOLSTAD OFFSHORE NK | Calibre Mining vs. Materialise NV | Calibre Mining vs. Performance Food Group | Calibre Mining vs. Solstad Offshore ASA |
| MagnaChip Semiconductor vs. JLF INVESTMENT | MagnaChip Semiconductor vs. Kingdee International Software | MagnaChip Semiconductor vs. CyberArk Software | MagnaChip Semiconductor vs. ECHO INVESTMENT ZY |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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