Correlation Between Chalice Mining and FOKUS MINING

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

By analyzing existing cross correlation between Chalice Mining Limited and FOKUS MINING P, you can compare the effects of market volatilities on Chalice Mining and FOKUS 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 Chalice Mining with a short position of FOKUS MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chalice Mining and FOKUS MINING.

Diversification Opportunities for Chalice Mining and FOKUS MINING

-0.1

Correlation Coefficient

Chalice Mining  FOKUS MINING

Good diversification

The 3 months correlation between Chalice and FOKUS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chalice Mining Limited and FOKUS MINING P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOKUS MINING P and Chalice 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 Chalice Mining Limited are associated (or correlated) with FOKUS MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOKUS MINING P has no effect on the direction of Chalice Mining i.e., Chalice Mining and FOKUS MINING go up and down completely randomly.

Pair Corralation between Chalice Mining and FOKUS MINING

Assuming the 90 days horizon Chalice Mining Limited is expected to generate 0.95 times more return on investment than FOKUS MINING. However, Chalice Mining Limited is 1.05 times less risky than FOKUS MINING. It trades about 0.22 of its potential returns per unit of risk. FOKUS MINING P is currently generating about -0.02 per unit of risk. If you would invest  58.00  in Chalice Mining Limited on April 23, 2025 and sell it today you would earn a total of  44.00  from holding Chalice Mining Limited or generate 75.86% return on investment over 90 days.

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

Chalice Mining Limited  vs.  FOKUS MINING P

Chalice Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chalice Mining Limited are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Chalice Mining reported solid returns over the last few months and may actually be approaching a breakup point.

FOKUS MINING P

Risk-Adjusted Performance

Very Weak

Over the last 90 days FOKUS MINING P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, FOKUS MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Chalice Mining and FOKUS MINING

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

The idea behind Chalice Mining Limited and FOKUS MINING P 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.