Correlation Between CanAlaska Uranium and Stria Lithium
Can any of the company-specific risk be diversified away by investing in both CanAlaska Uranium and Stria 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 CanAlaska Uranium and Stria Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanAlaska Uranium and Stria Lithium, you can compare the effects of market volatilities on CanAlaska Uranium and Stria 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 CanAlaska Uranium with a short position of Stria Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanAlaska Uranium and Stria Lithium.
Diversification Opportunities for CanAlaska Uranium and Stria Lithium
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CanAlaska and Stria is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CanAlaska Uranium and Stria Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stria Lithium and CanAlaska Uranium 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 CanAlaska Uranium are associated (or correlated) with Stria Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stria Lithium has no effect on the direction of CanAlaska Uranium i.e., CanAlaska Uranium and Stria Lithium go up and down completely randomly.
Pair Corralation between CanAlaska Uranium and Stria Lithium
Assuming the 90 days horizon CanAlaska Uranium is expected to generate 3.18 times less return on investment than Stria Lithium. But when comparing it to its historical volatility, CanAlaska Uranium is 4.11 times less risky than Stria Lithium. It trades about 0.08 of its potential returns per unit of risk. Stria Lithium is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Stria Lithium on August 25, 2024 and sell it today you would lose (11.86) from holding Stria Lithium or give up 74.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanAlaska Uranium vs. Stria Lithium
Performance |
| Timeline |
| CanAlaska Uranium |
| Stria Lithium |
CanAlaska Uranium and Stria Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanAlaska Uranium and Stria Lithium
The main advantage of trading using opposite CanAlaska Uranium and Stria Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanAlaska Uranium position performs unexpectedly, Stria 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 Stria Lithium will offset losses from the drop in Stria Lithium's long position.| CanAlaska Uranium vs. Petroleo Brasileiro Petrobras | CanAlaska Uranium vs. Equinor ASA ADR | CanAlaska Uranium vs. Eni SpA ADR | CanAlaska Uranium vs. YPF Sociedad Anonima |
| Stria Lithium vs. Norra Metals Corp | Stria Lithium vs. Amarc Resources | Stria Lithium vs. ZincX Resources Corp | Stria Lithium vs. Nuinsco Resources Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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