Correlation Between Grupo Mxico and Lithium Power
Can any of the company-specific risk be diversified away by investing in both Grupo Mxico and Lithium Power 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 Grupo Mxico and Lithium Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Mxico SAB and Lithium Power International, you can compare the effects of market volatilities on Grupo Mxico and Lithium Power 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 Grupo Mxico with a short position of Lithium Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Mxico and Lithium Power.
Diversification Opportunities for Grupo Mxico and Lithium Power
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Lithium is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Mxico SAB and Lithium Power International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Power Intern and Grupo Mxico 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 Grupo Mxico SAB are associated (or correlated) with Lithium Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Power Intern has no effect on the direction of Grupo Mxico i.e., Grupo Mxico and Lithium Power go up and down completely randomly.
Pair Corralation between Grupo Mxico and Lithium Power
If you would invest 22.00 in Lithium Power International on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Lithium Power International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Grupo Mxico SAB vs. Lithium Power International
Performance |
| Timeline |
| Grupo Mxico SAB |
| Lithium Power Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Mxico and Lithium Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Mxico and Lithium Power
The main advantage of trading using opposite Grupo Mxico and Lithium Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Mxico position performs unexpectedly, Lithium Power 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 Lithium Power will offset losses from the drop in Lithium Power's long position.| Grupo Mxico vs. ATT Inc | Grupo Mxico vs. Merck Company | Grupo Mxico vs. Walt Disney | Grupo Mxico vs. Caterpillar |
| Lithium Power vs. Macmahon Holdings Limited | Lithium Power vs. Rokmaster Resources Corp | Lithium Power vs. Hudson Resources | Lithium Power vs. Thunder Gold 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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