Correlation Between American Lithium and Anglo American
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Lithium Corp and Anglo American plc, you can compare the effects of market volatilities on American Lithium and Anglo American 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 American Lithium with a short position of Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Lithium and Anglo American.
Diversification Opportunities for American Lithium and Anglo American
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Anglo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding American Lithium Corp and Anglo American plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American plc and American Lithium 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 American Lithium Corp are associated (or correlated) with Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American plc has no effect on the direction of American Lithium i.e., American Lithium and Anglo American go up and down completely randomly.
Pair Corralation between American Lithium and Anglo American
Assuming the 90 days trading horizon American Lithium Corp is expected to under-perform the Anglo American. In addition to that, American Lithium is 4.21 times more volatile than Anglo American plc. It trades about -0.33 of its total potential returns per unit of risk. Anglo American plc is currently generating about -0.01 per unit of volatility. If you would invest 2,839 in Anglo American plc on September 24, 2024 and sell it today you would lose (19.00) from holding Anglo American plc or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Lithium Corp vs. Anglo American plc
Performance |
| Timeline |
| American Lithium Corp |
| Anglo American plc |
American Lithium and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Lithium and Anglo American
The main advantage of trading using opposite American Lithium and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Lithium position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| American Lithium vs. Standard Lithium | American Lithium vs. BYD Company Limited | American Lithium vs. Rock Tech Lithium |
| Anglo American vs. Rio Tinto Group | Anglo American vs. Liontown Resources Limited | Anglo American vs. NEXA RESOURCES SA | Anglo American vs. STRAITS TRADG SD |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |