Correlation Between Calibre Mining and UNITED RENTALS
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and UNITED RENTALS 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 UNITED RENTALS 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 UNITED RENTALS, you can compare the effects of market volatilities on Calibre Mining and UNITED RENTALS 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 UNITED RENTALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and UNITED RENTALS.
Diversification Opportunities for Calibre Mining and UNITED RENTALS
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calibre and UNITED is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and UNITED RENTALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED RENTALS 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 UNITED RENTALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED RENTALS has no effect on the direction of Calibre Mining i.e., Calibre Mining and UNITED RENTALS go up and down completely randomly.
Pair Corralation between Calibre Mining and UNITED RENTALS
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.47 times more return on investment than UNITED RENTALS. However, Calibre Mining is 1.47 times more volatile than UNITED RENTALS. It trades about 0.31 of its potential returns per unit of risk. UNITED RENTALS is currently generating about 0.23 per unit of risk. If you would invest 142.00 in Calibre Mining Corp on October 26, 2024 and sell it today you would earn a total of 23.00 from holding Calibre Mining Corp or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. UNITED RENTALS
Performance |
| Timeline |
| Calibre Mining Corp |
| UNITED RENTALS |
Calibre Mining and UNITED RENTALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and UNITED RENTALS
The main advantage of trading using opposite Calibre Mining and UNITED RENTALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, UNITED RENTALS 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 UNITED RENTALS will offset losses from the drop in UNITED RENTALS's long position.| Calibre Mining vs. Television Broadcasts Limited | Calibre Mining vs. SBI Insurance Group | Calibre Mining vs. Selective Insurance Group | Calibre Mining vs. Broadridge Financial Solutions |
| UNITED RENTALS vs. EMBARK EDUCATION LTD | UNITED RENTALS vs. Vienna Insurance Group | UNITED RENTALS vs. DeVry Education Group | UNITED RENTALS vs. Laureate Education |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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