Correlation Between Focus Graphite and Stria Lithium
Can any of the company-specific risk be diversified away by investing in both Focus Graphite 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 Focus Graphite and Stria Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Graphite and Stria Lithium, you can compare the effects of market volatilities on Focus Graphite 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 Focus Graphite with a short position of Stria Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and Stria Lithium.
Diversification Opportunities for Focus Graphite and Stria Lithium
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Focus and Stria is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and Stria Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stria Lithium and Focus Graphite 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 Focus Graphite 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 Focus Graphite i.e., Focus Graphite and Stria Lithium go up and down completely randomly.
Pair Corralation between Focus Graphite and Stria Lithium
If you would invest 5.00 in Focus Graphite on October 21, 2024 and sell it today you would earn a total of 0.88 from holding Focus Graphite or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Focus Graphite vs. Stria Lithium
Performance |
| Timeline |
| Focus Graphite |
| Stria Lithium |
Focus Graphite and Stria Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Graphite and Stria Lithium
The main advantage of trading using opposite Focus Graphite and Stria Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite 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.| Focus Graphite vs. Fury Gold Mines | Focus Graphite vs. Lion Copper and | Focus Graphite vs. Trilogy Metals | Focus Graphite vs. Western Copper and |
| Stria Lithium vs. Durango Resources | Stria Lithium vs. Avarone Metals | Stria Lithium vs. Pampa Metals | Stria Lithium vs. Sun Summit Minerals |
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.
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