Correlation Between Core Lithium and Clime Investment
Can any of the company-specific risk be diversified away by investing in both Core Lithium and Clime Investment 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 Clime Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Lithium and Clime Investment Management, you can compare the effects of market volatilities on Core Lithium and Clime Investment 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 Clime Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Lithium and Clime Investment.
Diversification Opportunities for Core Lithium and Clime Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Core and Clime is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Core Lithium and Clime Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clime Investment Man 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 Clime Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clime Investment Man has no effect on the direction of Core Lithium i.e., Core Lithium and Clime Investment go up and down completely randomly.
Pair Corralation between Core Lithium and Clime Investment
If you would invest 5.00 in Core Lithium on November 2, 2024 and sell it today you would earn a total of 0.90 from holding Core Lithium or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Lithium vs. Clime Investment Management
Performance |
| Timeline |
| Core Lithium |
| Clime Investment Man |
Core Lithium and Clime Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Lithium and Clime Investment
The main advantage of trading using opposite Core Lithium and Clime Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Lithium position performs unexpectedly, Clime Investment 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 Clime Investment will offset losses from the drop in Clime Investment's 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 |
| Clime Investment vs. Core Lithium | Clime Investment vs. Sayona Mining Limited | Clime Investment vs. Nickel Mines Limited | Clime Investment vs. AXP Energy |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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