Correlation Between Arizona Lithium and Progressive Planet
Can any of the company-specific risk be diversified away by investing in both Arizona Lithium and Progressive Planet 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 Arizona Lithium and Progressive Planet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arizona Lithium Limited and Progressive Planet Solutions, you can compare the effects of market volatilities on Arizona Lithium and Progressive Planet 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 Arizona Lithium with a short position of Progressive Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arizona Lithium and Progressive Planet.
Diversification Opportunities for Arizona Lithium and Progressive Planet
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arizona and Progressive is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Arizona Lithium Limited and Progressive Planet Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Planet and Arizona 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 Arizona Lithium Limited are associated (or correlated) with Progressive Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Planet has no effect on the direction of Arizona Lithium i.e., Arizona Lithium and Progressive Planet go up and down completely randomly.
Pair Corralation between Arizona Lithium and Progressive Planet
Assuming the 90 days horizon Arizona Lithium Limited is expected to under-perform the Progressive Planet. In addition to that, Arizona Lithium is 4.45 times more volatile than Progressive Planet Solutions. It trades about -0.11 of its total potential returns per unit of risk. Progressive Planet Solutions is currently generating about -0.32 per unit of volatility. If you would invest 12.00 in Progressive Planet Solutions on December 1, 2024 and sell it today you would lose (2.10) from holding Progressive Planet Solutions or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arizona Lithium Limited vs. Progressive Planet Solutions
Performance |
| Timeline |
| Arizona Lithium |
| Progressive Planet |
Arizona Lithium and Progressive Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arizona Lithium and Progressive Planet
The main advantage of trading using opposite Arizona Lithium and Progressive Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arizona Lithium position performs unexpectedly, Progressive Planet 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 Progressive Planet will offset losses from the drop in Progressive Planet's long position.| Arizona Lithium vs. Bushveld Minerals Limited | Arizona Lithium vs. Aurelia Metals Limited | Arizona Lithium vs. Artemis Resources | Arizona Lithium vs. Ascendant Resources |
| Progressive Planet vs. Avarone Metals | Progressive Planet vs. Amarc Resources | Progressive Planet vs. Huntsman Exploration | Progressive Planet vs. Adriatic Metals PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |