Correlation Between Hawkeye Gold and Imagine Lithium
Can any of the company-specific risk be diversified away by investing in both Hawkeye Gold and Imagine 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 Hawkeye Gold and Imagine Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkeye Gold and and Imagine Lithium, you can compare the effects of market volatilities on Hawkeye Gold and Imagine 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 Hawkeye Gold with a short position of Imagine Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkeye Gold and Imagine Lithium.
Diversification Opportunities for Hawkeye Gold and Imagine Lithium
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hawkeye and Imagine is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hawkeye Gold and and Imagine Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagine Lithium and Hawkeye Gold 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 Hawkeye Gold and are associated (or correlated) with Imagine Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagine Lithium has no effect on the direction of Hawkeye Gold i.e., Hawkeye Gold and Imagine Lithium go up and down completely randomly.
Pair Corralation between Hawkeye Gold and Imagine Lithium
Assuming the 90 days trading horizon Hawkeye Gold and is expected to under-perform the Imagine Lithium. In addition to that, Hawkeye Gold is 3.44 times more volatile than Imagine Lithium. It trades about -0.08 of its total potential returns per unit of risk. Imagine Lithium is currently generating about -0.21 per unit of volatility. If you would invest 3.00 in Imagine Lithium on August 29, 2024 and sell it today you would lose (0.50) from holding Imagine Lithium or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawkeye Gold and vs. Imagine Lithium
Performance |
| Timeline |
| Hawkeye Gold |
| Imagine Lithium |
Hawkeye Gold and Imagine Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawkeye Gold and Imagine Lithium
The main advantage of trading using opposite Hawkeye Gold and Imagine Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkeye Gold position performs unexpectedly, Imagine 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 Imagine Lithium will offset losses from the drop in Imagine Lithium's long position.| Hawkeye Gold vs. First Majestic Silver | Hawkeye Gold vs. Ivanhoe Energy | Hawkeye Gold vs. Orezone Gold Corp | Hawkeye Gold vs. Faraday Copper Corp |
| Imagine Lithium vs. Grid Metals Corp | Imagine Lithium vs. Hawkeye Gold and | Imagine Lithium vs. Fidelity Minerals Corp | Imagine Lithium vs. ExGen Resources |
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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