Correlation Between LithiumBank Resources and Saint Jean
Can any of the company-specific risk be diversified away by investing in both LithiumBank Resources and Saint Jean 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 Saint Jean 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 Saint Jean Carbon, you can compare the effects of market volatilities on LithiumBank Resources and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of LithiumBank Resources and Saint Jean.
Diversification Opportunities for LithiumBank Resources and Saint Jean
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LithiumBank and Saint is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding LithiumBank Resources Corp and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of LithiumBank Resources i.e., LithiumBank Resources and Saint Jean go up and down completely randomly.
Pair Corralation between LithiumBank Resources and Saint Jean
Assuming the 90 days horizon LithiumBank Resources is expected to generate 13.22 times less return on investment than Saint Jean. But when comparing it to its historical volatility, LithiumBank Resources Corp is 3.12 times less risky than Saint Jean. It trades about 0.02 of its potential returns per unit of risk. Saint Jean Carbon is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.79 in Saint Jean Carbon on November 29, 2024 and sell it today you would earn a total of 0.31 from holding Saint Jean Carbon or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
LithiumBank Resources Corp vs. Saint Jean Carbon
Performance |
| Timeline |
| LithiumBank Resources |
| Saint Jean Carbon |
LithiumBank Resources and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LithiumBank Resources and Saint Jean
The main advantage of trading using opposite LithiumBank Resources and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LithiumBank Resources position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Focus Graphite | LithiumBank Resources vs. Mineral Res |
| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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