Correlation Between Calibre Mining and JSC Halyk

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

Diversification Opportunities for Calibre Mining and JSC Halyk

-0.28

Correlation Coefficient

Calibre Mining  JSC Halyk

Very good diversification

The 3 months correlation between Calibre and JSC is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Calibre Mining i.e., Calibre Mining and JSC Halyk go up and down completely randomly.

Pair Corralation between Calibre Mining and JSC Halyk

Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 0.67 times more return on investment than JSC Halyk. However, Calibre Mining Corp is 1.48 times less risky than JSC Halyk. It trades about 0.08 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.06 per unit of risk. If you would invest  149.00  in Calibre Mining Corp on September 3, 2024 and sell it today you would earn a total of  19.00  from holding Calibre Mining Corp or generate 12.75% return on investment over 90 days.

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

Calibre Mining Corp  vs.  JSC Halyk bank

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 exhibited solid returns over the last few months and may actually be approaching a breakup point.

JSC Halyk bank

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JSC Halyk bank are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, JSC Halyk reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calibre Mining and JSC Halyk

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

The idea behind Calibre Mining Corp and JSC Halyk bank 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.

Check out your portfolio center.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.