Correlation Between American Lithium and Silver X
Can any of the company-specific risk be diversified away by investing in both American Lithium and Silver X 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 Lithium and Silver X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Lithium Corp and Silver X Mining, you can compare the effects of market volatilities on American Lithium and Silver X 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 Silver X. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Lithium and Silver X.
Diversification Opportunities for American Lithium and Silver X
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Silver is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Lithium Corp and Silver X Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver X Mining 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 Silver X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver X Mining has no effect on the direction of American Lithium i.e., American Lithium and Silver X go up and down completely randomly.
Pair Corralation between American Lithium and Silver X
If you would invest 38.00 in American Lithium Corp on November 2, 2024 and sell it today you would earn a total of 0.00 from holding American Lithium Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
American Lithium Corp vs. Silver X Mining
Performance |
| Timeline |
| American Lithium Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Silver X Mining |
American Lithium and Silver X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Lithium and Silver X
The main advantage of trading using opposite American Lithium and Silver X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Lithium position performs unexpectedly, Silver X 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 Silver X will offset losses from the drop in Silver X's long position.| American Lithium vs. Procter Gamble | American Lithium vs. Lion One Metals | American Lithium vs. Discover Financial Services | American Lithium vs. SEI Investments |
| Silver X vs. Aurelia Metals Limited | Silver X vs. Artemis Resources | Silver X vs. Azimut Exploration | Silver X vs. Champion Bear Resources |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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