Correlation Between Juggernaut Exploration and International Lithium
Can any of the company-specific risk be diversified away by investing in both Juggernaut Exploration and International 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 Juggernaut Exploration and International Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juggernaut Exploration and International Lithium Corp, you can compare the effects of market volatilities on Juggernaut Exploration and International 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 Juggernaut Exploration with a short position of International Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juggernaut Exploration and International Lithium.
Diversification Opportunities for Juggernaut Exploration and International Lithium
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Juggernaut and International is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Juggernaut Exploration and International Lithium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Lithium and Juggernaut Exploration 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 Juggernaut Exploration are associated (or correlated) with International Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Lithium has no effect on the direction of Juggernaut Exploration i.e., Juggernaut Exploration and International Lithium go up and down completely randomly.
Pair Corralation between Juggernaut Exploration and International Lithium
Assuming the 90 days horizon Juggernaut Exploration is expected to under-perform the International Lithium. But the pink sheet apears to be less risky and, when comparing its historical volatility, Juggernaut Exploration is 1.49 times less risky than International Lithium. The pink sheet trades about -0.06 of its potential returns per unit of risk. The International Lithium Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 |
Juggernaut Exploration vs. International Lithium Corp
Performance |
| Timeline |
| Juggernaut Exploration |
| International Lithium |
Juggernaut Exploration and International Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juggernaut Exploration and International Lithium
The main advantage of trading using opposite Juggernaut Exploration and International Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juggernaut Exploration position performs unexpectedly, International 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 International Lithium will offset losses from the drop in International Lithium's long position.| Juggernaut Exploration vs. BCM Resources | Juggernaut Exploration vs. Eskay Mining Corp | Juggernaut Exploration vs. Nevada King Gold | Juggernaut Exploration vs. Skeena Resources |
| International Lithium vs. Decade Resources | International Lithium vs. Silver Spruce Resources | International Lithium vs. Grid Metals Corp | International Lithium vs. Canada Rare Earth |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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