Correlation Between LithiumBank Resources and US Global
Can any of the company-specific risk be diversified away by investing in both LithiumBank Resources and US Global 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 LithiumBank Resources and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LithiumBank Resources Corp and US Global Investors, you can compare the effects of market volatilities on LithiumBank Resources and US Global 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 LithiumBank Resources with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of LithiumBank Resources and US Global.
Diversification Opportunities for LithiumBank Resources and US Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LithiumBank and GROW is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding LithiumBank Resources Corp and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and LithiumBank Resources 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 LithiumBank Resources Corp are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of LithiumBank Resources i.e., LithiumBank Resources and US Global go up and down completely randomly.
Pair Corralation between LithiumBank Resources and US Global
Assuming the 90 days horizon LithiumBank Resources Corp is expected to under-perform the US Global. In addition to that, LithiumBank Resources is 3.45 times more volatile than US Global Investors. It trades about -0.17 of its total potential returns per unit of risk. US Global Investors is currently generating about -0.02 per unit of volatility. If you would invest 253.00 in US Global Investors on September 2, 2024 and sell it today you would lose (9.00) from holding US Global Investors or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LithiumBank Resources Corp vs. US Global Investors
Performance |
| Timeline |
| LithiumBank Resources |
| US Global Investors |
LithiumBank Resources and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LithiumBank Resources and US Global
The main advantage of trading using opposite LithiumBank Resources and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LithiumBank Resources position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Focus Graphite | LithiumBank Resources vs. Mineral Res |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |