Correlation Between LithiumBank Resources and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both LithiumBank Resources and SAIHEAT 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 SAIHEAT 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 SAIHEAT Limited, you can compare the effects of market volatilities on LithiumBank Resources and SAIHEAT 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 SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of LithiumBank Resources and SAIHEAT.
Diversification Opportunities for LithiumBank Resources and SAIHEAT
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LithiumBank and SAIHEAT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding LithiumBank Resources Corp and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of LithiumBank Resources i.e., LithiumBank Resources and SAIHEAT go up and down completely randomly.
Pair Corralation between LithiumBank Resources and SAIHEAT
Assuming the 90 days horizon LithiumBank Resources Corp is expected to generate 0.63 times more return on investment than SAIHEAT. However, LithiumBank Resources Corp is 1.59 times less risky than SAIHEAT. It trades about -0.12 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about -0.08 per unit of risk. If you would invest 22.00 in LithiumBank Resources Corp on September 15, 2024 and sell it today you would lose (2.00) from holding LithiumBank Resources Corp or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LithiumBank Resources Corp vs. SAIHEAT Limited
Performance |
| Timeline |
| LithiumBank Resources |
| SAIHEAT Limited |
LithiumBank Resources and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LithiumBank Resources and SAIHEAT
The main advantage of trading using opposite LithiumBank Resources and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LithiumBank Resources position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT's long position.| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Focus Graphite | LithiumBank Resources vs. Mineral Res |
| SAIHEAT vs. Avient Corp | SAIHEAT vs. Parker Hannifin | SAIHEAT vs. Western Copper and | SAIHEAT vs. LithiumBank Resources Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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