Correlation Between US Lithium and Aspen Pharmacare
Can any of the company-specific risk be diversified away by investing in both US Lithium and Aspen Pharmacare 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 US Lithium and Aspen Pharmacare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Lithium Corp and Aspen Pharmacare Holdings, you can compare the effects of market volatilities on US Lithium and Aspen Pharmacare 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 US Lithium with a short position of Aspen Pharmacare. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Lithium and Aspen Pharmacare.
Diversification Opportunities for US Lithium and Aspen Pharmacare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LITH and Aspen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Lithium Corp and Aspen Pharmacare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Pharmacare Holdings and US Lithium 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 US Lithium Corp are associated (or correlated) with Aspen Pharmacare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Pharmacare Holdings has no effect on the direction of US Lithium i.e., US Lithium and Aspen Pharmacare go up and down completely randomly.
Pair Corralation between US Lithium and Aspen Pharmacare
Given the investment horizon of 90 days US Lithium Corp is expected to under-perform the Aspen Pharmacare. In addition to that, US Lithium is 1.17 times more volatile than Aspen Pharmacare Holdings. It trades about -0.06 of its total potential returns per unit of risk. Aspen Pharmacare Holdings is currently generating about 0.06 per unit of volatility. If you would invest 921.00 in Aspen Pharmacare Holdings on November 3, 2024 and sell it today you would earn a total of 304.00 from holding Aspen Pharmacare Holdings or generate 33.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.85% |
| Values | Daily Returns |
US Lithium Corp vs. Aspen Pharmacare Holdings
Performance |
| Timeline |
| US Lithium Corp |
| Aspen Pharmacare Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
US Lithium and Aspen Pharmacare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Lithium and Aspen Pharmacare
The main advantage of trading using opposite US Lithium and Aspen Pharmacare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Lithium position performs unexpectedly, Aspen Pharmacare 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 Aspen Pharmacare will offset losses from the drop in Aspen Pharmacare's long position.| US Lithium vs. Mc Endvrs | US Lithium vs. Kali Inc | US Lithium vs. One World Pharma | US Lithium vs. HempAmericana |
| Aspen Pharmacare vs. Amexdrug | Aspen Pharmacare vs. Aion Therapeutic | Aspen Pharmacare vs. Alterola Biotech | Aspen Pharmacare vs. The BC Bud |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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