Correlation Between Calibre Mining and Zoom Video

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

Diversification Opportunities for Calibre Mining and Zoom Video

-0.71

Correlation Coefficient

Calibre Mining  Zoom Video

Pay attention - limited upside

The 3 months correlation between Calibre and Zoom is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Calibre Mining i.e., Calibre Mining and Zoom Video go up and down completely randomly.

Pair Corralation between Calibre Mining and Zoom Video

Assuming the 90 days trading horizon Calibre Mining Corp is expected to under-perform the Zoom Video. In addition to that, Calibre Mining is 1.11 times more volatile than Zoom Video Communications. It trades about -0.08 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about 0.21 per unit of volatility. If you would invest  6,027  in Zoom Video Communications on September 20, 2024 and sell it today you would earn a total of  1,976  from holding Zoom Video Communications or generate 32.79% return on investment over 90 days.

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

Calibre Mining Corp  vs.  Zoom Video Communications

Calibre Mining Corp

Risk-Adjusted Performance

0 of 100

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 fragile 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.

Zoom Video Communications

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zoom Video Communications are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Zoom Video unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and Zoom Video

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

The idea behind Calibre Mining Corp and Zoom Video Communications 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.