Correlation Between International Battery and Savannah Resources
Can any of the company-specific risk be diversified away by investing in both International Battery and Savannah Resources 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 International Battery and Savannah Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Battery Metals and Savannah Resources Plc, you can compare the effects of market volatilities on International Battery and Savannah Resources 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 International Battery with a short position of Savannah Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Battery and Savannah Resources.
Diversification Opportunities for International Battery and Savannah Resources
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and Savannah is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding International Battery Metals and Savannah Resources Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savannah Resources Plc and International Battery 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 International Battery Metals are associated (or correlated) with Savannah Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savannah Resources Plc has no effect on the direction of International Battery i.e., International Battery and Savannah Resources go up and down completely randomly.
Pair Corralation between International Battery and Savannah Resources
Assuming the 90 days horizon International Battery Metals is expected to under-perform the Savannah Resources. In addition to that, International Battery is 1.71 times more volatile than Savannah Resources Plc. It trades about -0.14 of its total potential returns per unit of risk. Savannah Resources Plc is currently generating about -0.1 per unit of volatility. If you would invest 5.00 in Savannah Resources Plc on September 1, 2024 and sell it today you would lose (0.94) from holding Savannah Resources Plc or give up 18.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Battery Metals vs. Savannah Resources Plc
Performance |
| Timeline |
| International Battery |
| Savannah Resources Plc |
International Battery and Savannah Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Battery and Savannah Resources
The main advantage of trading using opposite International Battery and Savannah Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Battery position performs unexpectedly, Savannah Resources 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 Savannah Resources will offset losses from the drop in Savannah Resources' long position.| International Battery vs. Savannah Resources Plc | International Battery vs. Tartisan Nickel Corp | International Battery vs. Critical Elements | International Battery vs. Lithium Energi Exploration |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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