Correlation Between Core Lithium and Norra Metals
Can any of the company-specific risk be diversified away by investing in both Core Lithium and Norra Metals 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 Norra Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Lithium and Norra Metals Corp, you can compare the effects of market volatilities on Core Lithium and Norra Metals 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 Norra Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Lithium and Norra Metals.
Diversification Opportunities for Core Lithium and Norra Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Core and Norra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Core Lithium and Norra Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norra Metals Corp 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 Norra Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norra Metals Corp has no effect on the direction of Core Lithium i.e., Core Lithium and Norra Metals go up and down completely randomly.
Pair Corralation between Core Lithium and Norra Metals
If you would invest 5.40 in Core Lithium on November 5, 2024 and sell it today you would earn a total of 0.87 from holding Core Lithium or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Core Lithium vs. Norra Metals Corp
Performance |
| Timeline |
| Core Lithium |
| Norra Metals Corp |
Core Lithium and Norra Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Lithium and Norra Metals
The main advantage of trading using opposite Core Lithium and Norra Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Lithium position performs unexpectedly, Norra Metals 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 Norra Metals will offset losses from the drop in Norra Metals' 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 |
| Norra Metals vs. Inhibrx | Norra Metals vs. Catalyst Pharmaceuticals | Norra Metals vs. Neogen | Norra Metals vs. Apogee Therapeutics, Common |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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