Correlation Between American Lithium and Glen Eagle
Can any of the company-specific risk be diversified away by investing in both American Lithium and Glen Eagle 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 Glen Eagle 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 Glen Eagle Resources, you can compare the effects of market volatilities on American Lithium and Glen Eagle 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 Glen Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Lithium and Glen Eagle.
Diversification Opportunities for American Lithium and Glen Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Glen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Lithium Corp and Glen Eagle Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glen Eagle Resources 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 Glen Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glen Eagle Resources has no effect on the direction of American Lithium i.e., American Lithium and Glen Eagle go up and down completely randomly.
Pair Corralation between American Lithium and Glen Eagle
If you would invest 34.00 in American Lithium Corp on September 1, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
American Lithium Corp vs. Glen Eagle Resources
Performance |
| Timeline |
| American Lithium Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Glen Eagle Resources |
American Lithium and Glen Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Lithium and Glen Eagle
The main advantage of trading using opposite American Lithium and Glen Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Lithium position performs unexpectedly, Glen Eagle 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 Glen Eagle will offset losses from the drop in Glen Eagle's long position.| American Lithium vs. American Lithium Corp | American Lithium vs. Frontier Lithium | American Lithium vs. Cypress Development Corp | American Lithium vs. Rock Tech Lithium |
| Glen Eagle vs. ATT Inc | Glen Eagle vs. Merck Company | Glen Eagle vs. Walt Disney | Glen Eagle vs. Caterpillar |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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