Correlation Between Core Lithium and Anson Resources
Can any of the company-specific risk be diversified away by investing in both Core Lithium and Anson Resources 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 Core Lithium and Anson Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Lithium and Anson Resources Limited, you can compare the effects of market volatilities on Core Lithium and Anson Resources 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 Core Lithium with a short position of Anson Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Lithium and Anson Resources.
Diversification Opportunities for Core Lithium and Anson Resources
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Core and Anson is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Core Lithium and Anson Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anson Resources and Core 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 Core Lithium are associated (or correlated) with Anson Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anson Resources has no effect on the direction of Core Lithium i.e., Core Lithium and Anson Resources go up and down completely randomly.
Pair Corralation between Core Lithium and Anson Resources
Assuming the 90 days horizon Core Lithium is expected to generate 1.14 times more return on investment than Anson Resources. However, Core Lithium is 1.14 times more volatile than Anson Resources Limited. It trades about 0.14 of its potential returns per unit of risk. Anson Resources Limited is currently generating about -0.16 per unit of risk. If you would invest 5.00 in Core Lithium on November 3, 2024 and sell it today you would earn a total of 1.27 from holding Core Lithium or generate 25.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Lithium vs. Anson Resources Limited
Performance |
| Timeline |
| Core Lithium |
| Anson Resources |
Core Lithium and Anson Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Lithium and Anson Resources
The main advantage of trading using opposite Core Lithium and Anson Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Lithium position performs unexpectedly, Anson Resources 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 Anson Resources will offset losses from the drop in Anson Resources' long position.| Core Lithium vs. Macmahon Holdings Limited | Core Lithium vs. Prime Meridian Resources | Core Lithium vs. International Lithium Corp | Core Lithium vs. Hudson Resources |
| Anson Resources vs. Edison Cobalt Corp | Anson Resources vs. Champion Bear Resources | Anson Resources vs. Avarone Metals | Anson Resources 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |