Correlation Between Lomiko Metals and Great Atlantic
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and Great Atlantic 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 Lomiko Metals and Great Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and Great Atlantic Resources, you can compare the effects of market volatilities on Lomiko Metals and Great Atlantic 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 Lomiko Metals with a short position of Great Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and Great Atlantic.
Diversification Opportunities for Lomiko Metals and Great Atlantic
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lomiko and Great is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Great Atlantic Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Atlantic Resources and Lomiko Metals 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 Lomiko Metals are associated (or correlated) with Great Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Atlantic Resources has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Great Atlantic go up and down completely randomly.
Pair Corralation between Lomiko Metals and Great Atlantic
Assuming the 90 days horizon Lomiko Metals is expected to under-perform the Great Atlantic. But the stock apears to be less risky and, when comparing its historical volatility, Lomiko Metals is 2.19 times less risky than Great Atlantic. The stock trades about -0.25 of its potential returns per unit of risk. The Great Atlantic Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Great Atlantic Resources on September 1, 2024 and sell it today you would lose (0.50) from holding Great Atlantic Resources or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lomiko Metals vs. Great Atlantic Resources
Performance |
| Timeline |
| Lomiko Metals |
| Great Atlantic Resources |
Lomiko Metals and Great Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lomiko Metals and Great Atlantic
The main advantage of trading using opposite Lomiko Metals and Great Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, Great Atlantic 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 Great Atlantic will offset losses from the drop in Great Atlantic's long position.| Lomiko Metals vs. Sangoma Technologies Corp | Lomiko Metals vs. AGF Management Limited | Lomiko Metals vs. Metalero Mining Corp | Lomiko Metals vs. Altair Resources |
| Great Atlantic vs. Kiplin Metals | Great Atlantic vs. Pure Energy Minerals | Great Atlantic vs. Noram Lithium Corp | Great Atlantic vs. Minnova 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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