Correlation Between International Lithium and Juggernaut Exploration
Can any of the company-specific risk be diversified away by investing in both International Lithium and Juggernaut Exploration 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 Juggernaut Exploration 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 Juggernaut Exploration, you can compare the effects of market volatilities on International Lithium and Juggernaut Exploration 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 Juggernaut Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Lithium and Juggernaut Exploration.
Diversification Opportunities for International Lithium and Juggernaut Exploration
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Juggernaut is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding International Lithium Corp and Juggernaut Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juggernaut Exploration 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 Juggernaut Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juggernaut Exploration has no effect on the direction of International Lithium i.e., International Lithium and Juggernaut Exploration go up and down completely randomly.
Pair Corralation between International Lithium and Juggernaut Exploration
Assuming the 90 days horizon International Lithium Corp is expected to generate 1.49 times more return on investment than Juggernaut Exploration. However, International Lithium is 1.49 times more volatile than Juggernaut Exploration. It trades about 0.06 of its potential returns per unit of risk. Juggernaut Exploration is currently generating about -0.06 per unit of risk. If you would invest 1.29 in International Lithium Corp on September 1, 2024 and sell it today you would earn a total of 0.01 from holding International Lithium Corp or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Lithium Corp vs. Juggernaut Exploration
Performance |
| Timeline |
| International Lithium |
| Juggernaut Exploration |
International Lithium and Juggernaut Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Lithium and Juggernaut Exploration
The main advantage of trading using opposite International Lithium and Juggernaut Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Lithium position performs unexpectedly, Juggernaut Exploration 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 Juggernaut Exploration will offset losses from the drop in Juggernaut Exploration'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 |
| Juggernaut Exploration vs. BCM Resources | Juggernaut Exploration vs. Eskay Mining Corp | Juggernaut Exploration vs. Nevada King Gold | Juggernaut Exploration vs. Skeena 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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