Correlation Between Lomiko Metals and TD Holdings
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and TD Holdings 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 TD Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and TD Holdings, you can compare the effects of market volatilities on Lomiko Metals and TD Holdings 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 TD Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and TD Holdings.
Diversification Opportunities for Lomiko Metals and TD Holdings
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lomiko and GLG is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and TD Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Holdings 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 TD Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Holdings has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and TD Holdings go up and down completely randomly.
Pair Corralation between Lomiko Metals and TD Holdings
Assuming the 90 days horizon Lomiko Metals is expected to generate 37.36 times more return on investment than TD Holdings. However, Lomiko Metals is 37.36 times more volatile than TD Holdings. It trades about 0.18 of its potential returns per unit of risk. TD Holdings is currently generating about -0.14 per unit of risk. If you would invest 19.00 in Lomiko Metals on August 31, 2024 and sell it today you would lose (10.00) from holding Lomiko Metals or give up 52.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 8.58% |
| Values | Daily Returns |
Lomiko Metals vs. TD Holdings
Performance |
| Timeline |
| Lomiko Metals |
| TD Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lomiko Metals and TD Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lomiko Metals and TD Holdings
The main advantage of trading using opposite Lomiko Metals and TD Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, TD Holdings 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 TD Holdings will offset losses from the drop in TD Holdings' long position.| Lomiko Metals vs. ZincX Resources Corp | Lomiko Metals vs. Mundoro Capital | Lomiko Metals vs. Strategic Resources | Lomiko Metals vs. Norra Metals Corp |
| TD Holdings vs. Vizsla Resources Corp | TD Holdings vs. Western Copper and | TD Holdings vs. Americas Silver Corp | TD Holdings vs. EMX Royalty 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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