Correlation Between C3 Metals and International Lithium
Can any of the company-specific risk be diversified away by investing in both C3 Metals and International 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 C3 Metals and International Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C3 Metals and International Lithium Corp, you can compare the effects of market volatilities on C3 Metals and International 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 C3 Metals with a short position of International Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Metals and International Lithium.
Diversification Opportunities for C3 Metals and International Lithium
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CUAUF and International is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding C3 Metals and International Lithium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Lithium and C3 Metals 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 C3 Metals are associated (or correlated) with International Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Lithium has no effect on the direction of C3 Metals i.e., C3 Metals and International Lithium go up and down completely randomly.
Pair Corralation between C3 Metals and International Lithium
Assuming the 90 days horizon C3 Metals is expected to under-perform the International Lithium. But the otc stock apears to be less risky and, when comparing its historical volatility, C3 Metals is 2.51 times less risky than International Lithium. The otc stock trades about -0.46 of its potential returns per unit of risk. The International Lithium Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.29 in International Lithium Corp on September 1, 2024 and sell it today you would earn a total of 0.01 from holding International Lithium Corp or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
C3 Metals vs. International Lithium Corp
Performance |
| Timeline |
| C3 Metals |
| International Lithium |
C3 Metals and International Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C3 Metals and International Lithium
The main advantage of trading using opposite C3 Metals and International Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Metals position performs unexpectedly, International 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 International Lithium will offset losses from the drop in International Lithium's long position.| C3 Metals vs. Gouverneur Bancorp | C3 Metals vs. 1911 Gold Corp | C3 Metals vs. YourWay Cannabis Brands | C3 Metals vs. Harfang Exploration |
| International Lithium vs. Decade Resources | International Lithium vs. Silver Spruce Resources | International Lithium vs. Grid Metals Corp | International Lithium vs. Canada Rare Earth |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |