Correlation Between Calibre Mining and Filo Mining

Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Filo 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 Calibre Mining and Filo Mining 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 Filo Mining Corp, you can compare the effects of market volatilities on Calibre Mining and Filo 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 Calibre Mining with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Filo Mining.

Diversification Opportunities for Calibre Mining and Filo Mining

0.21

Correlation Coefficient

Calibre Mining  Filo Mining

Modest diversification

The 3 months correlation between Calibre and Filo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Filo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filo Mining Corp 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 Filo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filo Mining Corp has no effect on the direction of Calibre Mining i.e., Calibre Mining and Filo Mining go up and down completely randomly.

Pair Corralation between Calibre Mining and Filo Mining

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 3.75 times more return on investment than Filo Mining. However, Calibre Mining is 3.75 times more volatile than Filo Mining Corp. It trades about 0.06 of its potential returns per unit of risk. Filo Mining Corp is currently generating about 0.09 per unit of risk. If you would invest  226.00  in Calibre Mining Corp on September 11, 2024 and sell it today you would earn a total of  18.00  from holding Calibre Mining Corp or generate 7.96% 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.  Filo Mining Corp

Calibre Mining Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Calibre Mining may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Filo Mining Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Filo Mining Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, Filo Mining is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Calibre Mining and Filo Mining

The main advantage of trading using opposite Calibre Mining and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, Filo 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 Filo Mining will offset losses from the drop in Filo Mining's long position.

The idea behind Calibre Mining Corp and Filo 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.