Correlation Between AGRICULTBK HADR25 and Calibre Mining

Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR25 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 AGRICULTBK HADR25 and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Calibre Mining Corp, you can compare the effects of market volatilities on AGRICULTBK HADR25 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 AGRICULTBK HADR25 with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR25 and Calibre Mining.

Diversification Opportunities for AGRICULTBK HADR25 and Calibre Mining

-0.3

Correlation Coefficient

AGRICULTBK HADR25  Calibre Mining

Very good diversification

The 3 months correlation between AGRICULTBK and Calibre is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC 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 AGRICULTBK HADR25 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 AGRICULTBK HADR25 YC 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 AGRICULTBK HADR25 i.e., AGRICULTBK HADR25 and Calibre Mining go up and down completely randomly.

Pair Corralation between AGRICULTBK HADR25 and Calibre Mining

Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 0.89 times more return on investment than Calibre Mining. However, AGRICULTBK HADR25 YC is 1.12 times less risky than Calibre Mining. It trades about 0.2 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.03 per unit of risk. If you would invest  950.00  in AGRICULTBK HADR25 YC on September 13, 2024 and sell it today you would earn a total of  280.00  from holding AGRICULTBK HADR25 YC or generate 29.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGRICULTBK HADR25 YC  vs.  Calibre Mining Corp

AGRICULTBK HADR25

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGRICULTBK HADR25 reported solid returns over the last few months and may actually be approaching a breakup point.

Calibre Mining Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Calibre Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AGRICULTBK HADR25 and Calibre Mining

The main advantage of trading using opposite AGRICULTBK HADR25 and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR25 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 AGRICULTBK HADR25 YC 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.