Correlation Between Amexdrug and US Lithium
Can any of the company-specific risk be diversified away by investing in both Amexdrug and US Lithium 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 Amexdrug and US Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amexdrug and US Lithium Corp, you can compare the effects of market volatilities on Amexdrug and US Lithium 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 Amexdrug with a short position of US Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amexdrug and US Lithium.
Diversification Opportunities for Amexdrug and US Lithium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amexdrug and LITH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amexdrug and US Lithium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Lithium Corp and Amexdrug 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 Amexdrug are associated (or correlated) with US Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Lithium Corp has no effect on the direction of Amexdrug i.e., Amexdrug and US Lithium go up and down completely randomly.
Pair Corralation between Amexdrug and US Lithium
Given the investment horizon of 90 days Amexdrug is expected to generate 0.09 times more return on investment than US Lithium. However, Amexdrug is 10.86 times less risky than US Lithium. It trades about 0.0 of its potential returns per unit of risk. US Lithium Corp is currently generating about -0.06 per unit of risk. If you would invest 0.20 in Amexdrug on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Amexdrug or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Amexdrug vs. US Lithium Corp
Performance |
| Timeline |
| Amexdrug |
| US Lithium Corp |
Amexdrug and US Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amexdrug and US Lithium
The main advantage of trading using opposite Amexdrug and US Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amexdrug position performs unexpectedly, US Lithium 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 US Lithium will offset losses from the drop in US Lithium's long position.| Amexdrug vs. Videolocity International | Amexdrug vs. Mills Music Trust | Amexdrug vs. McGrath RentCorp | Amexdrug vs. Alta Equipment Group |
| US Lithium vs. Mc Endvrs | US Lithium vs. Kali Inc | US Lithium vs. One World Pharma | US Lithium vs. HempAmericana |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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