Correlation Between Calibre Mining and AGRICULTBK HADR/25

Can any of the company-specific risk be diversified away by investing in both Calibre Mining and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on Calibre Mining and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and AGRICULTBK HADR/25.

Diversification Opportunities for Calibre Mining and AGRICULTBK HADR/25

0.03

Correlation Coefficient

Calibre Mining  AGRICULTBK HADR/25

Significant diversification

The 3 months correlation between Calibre and AGRICULTBK is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR/25 has no effect on the direction of Calibre Mining i.e., Calibre Mining and AGRICULTBK HADR/25 go up and down completely randomly.

Pair Corralation between Calibre Mining and AGRICULTBK HADR/25

Assuming the 90 days trading horizon Calibre Mining is expected to generate 1.69 times less return on investment than AGRICULTBK HADR/25. In addition to that, Calibre Mining is 1.6 times more volatile than AGRICULTBK HADR25 YC. It trades about 0.06 of its total potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.17 per unit of volatility. If you would invest  1,120  in AGRICULTBK HADR25 YC on September 5, 2024 and sell it today you would earn a total of  70.00  from holding AGRICULTBK HADR25 YC or generate 6.25% return on investment over 90 days.

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

Calibre Mining Corp  vs.  AGRICULTBK HADR25 YC

Calibre Mining Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Calibre Mining may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AGRICULTBK HADR/25

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, AGRICULTBK HADR/25 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and AGRICULTBK HADR/25

The main advantage of trading using opposite Calibre Mining and AGRICULTBK HADR/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining position performs unexpectedly, AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 will offset losses from the drop in AGRICULTBK HADR/25's long position.

The idea behind Calibre Mining Corp and AGRICULTBK HADR25 YC 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.