Correlation Between American Battery and American CuMo
Can any of the company-specific risk be diversified away by investing in both American Battery and American CuMo 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 American Battery and American CuMo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Battery Metals and American CuMo Mining, you can compare the effects of market volatilities on American Battery and American CuMo 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 Battery with a short position of American CuMo. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Battery and American CuMo.
Diversification Opportunities for American Battery and American CuMo
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and American is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding American Battery Metals and American CuMo Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American CuMo Mining and American Battery 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 Battery Metals are associated (or correlated) with American CuMo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American CuMo Mining has no effect on the direction of American Battery i.e., American Battery and American CuMo go up and down completely randomly.
Pair Corralation between American Battery and American CuMo
If you would invest 68.00 in American Battery Metals on September 1, 2024 and sell it today you would earn a total of 0.00 from holding American Battery Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
American Battery Metals vs. American CuMo Mining
Performance |
| Timeline |
| American Battery Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American CuMo Mining |
American Battery and American CuMo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Battery and American CuMo
The main advantage of trading using opposite American Battery and American CuMo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Battery position performs unexpectedly, American CuMo 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 American CuMo will offset losses from the drop in American CuMo's long position.| American Battery vs. Artificial Intelligence Technology | American Battery vs. Aqua Metals | American Battery vs. Ozop Surgical Corp | American Battery vs. Senseonics Holdings |
| American CuMo vs. South32 Limited | American CuMo vs. NioCorp Developments Ltd | American CuMo vs. HUMANA INC | American CuMo vs. SCOR PK |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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