Correlation Between IShares Global and Calibre Mining

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

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

Diversification Opportunities for IShares Global and Calibre Mining

-0.12

Correlation Coefficient

IShares Global  Calibre Mining

Good diversification

The 3 months correlation between IShares and Calibre is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Tech 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 IShares Global 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 iShares Global Tech 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 IShares Global i.e., IShares Global and Calibre Mining go up and down completely randomly.

Pair Corralation between IShares Global and Calibre Mining

Considering the 90-day investment horizon iShares Global Tech is expected to generate 0.43 times more return on investment than Calibre Mining. However, iShares Global Tech is 2.34 times less risky than Calibre Mining. It trades about 0.21 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.27 per unit of risk. If you would invest  7,852  in iShares Global Tech on March 28, 2024 and sell it today you would earn a total of  434.00  from holding iShares Global Tech or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.3%
Values	Daily Returns

iShares Global Tech  vs.  Calibre Mining Corp

iShares Global Tech

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Global Tech are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, IShares Global may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Calibre Mining Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Calibre Mining may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Pair Trading with IShares Global and Calibre Mining

The main advantage of trading using opposite IShares Global and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global 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 iShares Global Tech 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.