Correlation Between International Lithium and First American
Can any of the company-specific risk be diversified away by investing in both International Lithium and First American 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 Lithium and First American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Lithium Corp and First American Silver, you can compare the effects of market volatilities on International Lithium and First American 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 Lithium with a short position of First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Lithium and First American.
Diversification Opportunities for International Lithium and First American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Lithium Corp and First American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American Silver and International Lithium 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 Lithium Corp are associated (or correlated) with First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Silver has no effect on the direction of International Lithium i.e., International Lithium and First American go up and down completely randomly.
Pair Corralation between International Lithium and First American
If you would invest 1.30 in International Lithium Corp on August 25, 2024 and sell it today you would lose (0.19) from holding International Lithium Corp or give up 14.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Lithium Corp vs. First American Silver
Performance |
| Timeline |
| International Lithium |
| First American Silver |
International Lithium and First American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Lithium and First American
The main advantage of trading using opposite International Lithium and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Lithium position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.| International Lithium vs. Decade Resources | International Lithium vs. Silver Spruce Resources | International Lithium vs. Grid Metals Corp | International Lithium vs. Canada Rare Earth |
| First American vs. Norra Metals Corp | First American vs. ZincX Resources Corp | First American vs. Nuinsco Resources Limited | First American vs. South Star Battery |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |