Correlation Between Comba Telecom and Calibre Mining

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Can any of the company-specific risk be diversified away by investing in both Comba Telecom and Calibre Mining 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 Comba Telecom and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and Calibre Mining Corp, you can compare the effects of market volatilities on Comba Telecom and Calibre Mining 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 Comba Telecom with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Calibre Mining.

Diversification Opportunities for Comba Telecom and Calibre Mining

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Comba and Calibre is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp and Comba Telecom 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 Comba Telecom Systems are associated (or correlated) with Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of Comba Telecom i.e., Comba Telecom and Calibre Mining go up and down completely randomly.

Pair Corralation between Comba Telecom and Calibre Mining

Assuming the 90 days trading horizon Comba Telecom Systems is expected to generate 1.83 times more return on investment than Calibre Mining. However, Comba Telecom is 1.83 times more volatile than Calibre Mining Corp. It trades about 0.22 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.38 per unit of risk. If you would invest  11.00  in Comba Telecom Systems on September 28, 2024 and sell it today you would earn a total of  2.00  from holding Comba Telecom Systems or generate 18.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Comba Telecom Systems  vs.  Calibre Mining Corp

 Performance 
       Timeline  
Comba Telecom Systems 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Comba Telecom Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Comba Telecom is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Calibre Mining Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Calibre Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Comba Telecom and Calibre Mining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Comba Telecom and Calibre Mining

The main advantage of trading using opposite Comba Telecom and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.
The idea behind Comba Telecom Systems and Calibre Mining Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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