Correlation Between Ascendant Resources and American Battery
Can any of the company-specific risk be diversified away by investing in both Ascendant Resources and American Battery 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 Ascendant Resources and American Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendant Resources and American Battery Metals, you can compare the effects of market volatilities on Ascendant Resources and American Battery 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 Ascendant Resources with a short position of American Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendant Resources and American Battery.
Diversification Opportunities for Ascendant Resources and American Battery
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascendant and American is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ascendant Resources and American Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Battery Metals and Ascendant Resources 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 Ascendant Resources are associated (or correlated) with American Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Battery Metals has no effect on the direction of Ascendant Resources i.e., Ascendant Resources and American Battery go up and down completely randomly.
Pair Corralation between Ascendant Resources and American Battery
If you would invest 4.00 in Ascendant Resources on August 29, 2024 and sell it today you would lose (0.68) from holding Ascendant Resources or give up 17.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ascendant Resources vs. American Battery Metals
Performance |
| Timeline |
| Ascendant Resources |
| American Battery Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ascendant Resources and American Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendant Resources and American Battery
The main advantage of trading using opposite Ascendant Resources and American Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendant Resources position performs unexpectedly, American Battery 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 Battery will offset losses from the drop in American Battery's long position.| Ascendant Resources vs. Rockridge Resources | Ascendant Resources vs. Vital Metals Limited | Ascendant Resources vs. Ameriwest Lithium | Ascendant Resources vs. Osisko Metals Incorporated |
| American Battery vs. Artificial Intelligence Technology | American Battery vs. Aqua Metals | American Battery vs. Ozop Surgical Corp | American Battery vs. Senseonics Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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