Correlation Between Giga Metals and Lithium Ionic
Can any of the company-specific risk be diversified away by investing in both Giga Metals and Lithium Ionic 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 Giga Metals and Lithium Ionic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Giga Metals and Lithium Ionic Corp, you can compare the effects of market volatilities on Giga Metals and Lithium Ionic 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 Giga Metals with a short position of Lithium Ionic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giga Metals and Lithium Ionic.
Diversification Opportunities for Giga Metals and Lithium Ionic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Giga and Lithium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Giga Metals and Lithium Ionic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Ionic Corp and Giga Metals 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 Giga Metals are associated (or correlated) with Lithium Ionic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Ionic Corp has no effect on the direction of Giga Metals i.e., Giga Metals and Lithium Ionic go up and down completely randomly.
Pair Corralation between Giga Metals and Lithium Ionic
Assuming the 90 days horizon Giga Metals is expected to under-perform the Lithium Ionic. But the otc stock apears to be less risky and, when comparing its historical volatility, Giga Metals is 1.24 times less risky than Lithium Ionic. The otc stock trades about -0.04 of its potential returns per unit of risk. The Lithium Ionic Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Lithium Ionic Corp on October 25, 2024 and sell it today you would lose (75.00) from holding Lithium Ionic Corp or give up 56.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 23.59% |
| Values | Daily Returns |
Giga Metals vs. Lithium Ionic Corp
Performance |
| Timeline |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lithium Ionic Corp |
Giga Metals and Lithium Ionic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giga Metals and Lithium Ionic
The main advantage of trading using opposite Giga Metals and Lithium Ionic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giga Metals position performs unexpectedly, Lithium Ionic 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 Ionic will offset losses from the drop in Lithium Ionic's long position.| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel Corp |
| Lithium Ionic vs. IGO Limited | Lithium Ionic vs. Grid Metals Corp | Lithium Ionic vs. First American Silver | Lithium Ionic vs. Qubec Nickel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |