Correlation Between LithiumBank Resources and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both LithiumBank Resources and Marti Technologies 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 Marti Technologies 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 Marti Technologies, you can compare the effects of market volatilities on LithiumBank Resources and Marti Technologies 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 Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of LithiumBank Resources and Marti Technologies.
Diversification Opportunities for LithiumBank Resources and Marti Technologies
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between LithiumBank and Marti is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding LithiumBank Resources Corp and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of LithiumBank Resources i.e., LithiumBank Resources and Marti Technologies go up and down completely randomly.
Pair Corralation between LithiumBank Resources and Marti Technologies
Assuming the 90 days horizon LithiumBank Resources Corp is expected to under-perform the Marti Technologies. But the otc stock apears to be less risky and, when comparing its historical volatility, LithiumBank Resources Corp is 1.2 times less risky than Marti Technologies. The otc stock trades about -0.2 of its potential returns per unit of risk. The Marti Technologies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Marti Technologies on August 31, 2024 and sell it today you would earn a total of 44.00 from holding Marti Technologies or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LithiumBank Resources Corp vs. Marti Technologies
Performance |
| Timeline |
| LithiumBank Resources |
| Marti Technologies |
LithiumBank Resources and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LithiumBank Resources and Marti Technologies
The main advantage of trading using opposite LithiumBank Resources and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LithiumBank Resources position performs unexpectedly, Marti Technologies 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 Marti Technologies will offset losses from the drop in Marti Technologies' long position.| LithiumBank Resources vs. Liontown Resources Limited | LithiumBank Resources vs. ATT Inc | LithiumBank Resources vs. Merck Company | LithiumBank Resources vs. Walt Disney |
| Marti Technologies vs. Electrovaya Common Shares | Marti Technologies vs. Avis Budget Group | Marti Technologies vs. Supercom | Marti Technologies vs. United Rentals |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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