Correlation Between LithiumBank Resources and ATRenew
Can any of the company-specific risk be diversified away by investing in both LithiumBank Resources and ATRenew 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 ATRenew 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 ATRenew Inc DRC, you can compare the effects of market volatilities on LithiumBank Resources and ATRenew 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 ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of LithiumBank Resources and ATRenew.
Diversification Opportunities for LithiumBank Resources and ATRenew
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LithiumBank and ATRenew is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding LithiumBank Resources Corp and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC 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 ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of LithiumBank Resources i.e., LithiumBank Resources and ATRenew go up and down completely randomly.
Pair Corralation between LithiumBank Resources and ATRenew
Assuming the 90 days horizon LithiumBank Resources Corp is expected to under-perform the ATRenew. But the otc stock apears to be less risky and, when comparing its historical volatility, LithiumBank Resources Corp is 1.11 times less risky than ATRenew. The otc stock trades about -0.08 of its potential returns per unit of risk. The ATRenew Inc DRC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 302.00 in ATRenew Inc DRC on September 1, 2024 and sell it today you would earn a total of 27.00 from holding ATRenew Inc DRC or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LithiumBank Resources Corp vs. ATRenew Inc DRC
Performance |
| Timeline |
| LithiumBank Resources |
| ATRenew Inc DRC |
LithiumBank Resources and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LithiumBank Resources and ATRenew
The main advantage of trading using opposite LithiumBank Resources and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LithiumBank Resources position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Focus Graphite | LithiumBank Resources vs. Mineral Res |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |