Correlation Between TD Holdings and Standard Lithium
Can any of the company-specific risk be diversified away by investing in both TD Holdings and Standard 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 TD Holdings and Standard Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TD Holdings and Standard Lithium, you can compare the effects of market volatilities on TD Holdings and Standard 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 TD Holdings with a short position of Standard Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Holdings and Standard Lithium.
Diversification Opportunities for TD Holdings and Standard Lithium
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GLG and Standard is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding TD Holdings and Standard Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Lithium and TD Holdings 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 TD Holdings are associated (or correlated) with Standard Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Lithium has no effect on the direction of TD Holdings i.e., TD Holdings and Standard Lithium go up and down completely randomly.
Pair Corralation between TD Holdings and Standard Lithium
If you would invest 51.00 in TD Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding TD Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
TD Holdings vs. Standard Lithium
Performance |
| Timeline |
| TD Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Standard Lithium |
TD Holdings and Standard Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Holdings and Standard Lithium
The main advantage of trading using opposite TD Holdings and Standard Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Holdings position performs unexpectedly, Standard 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 Standard Lithium will offset losses from the drop in Standard Lithium's long position.| TD Holdings vs. Vizsla Resources Corp | TD Holdings vs. Western Copper and | TD Holdings vs. Americas Silver Corp | TD Holdings vs. EMX Royalty Corp |
| Standard Lithium vs. NioCorp Developments Ltd | Standard Lithium vs. Teck Resources Ltd | Standard Lithium vs. Sigma Lithium Resources | Standard Lithium vs. MP Materials Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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