Correlation Between Lomiko Metals and Jourdan Resources
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and Jourdan Resources 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 Jourdan Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and Jourdan Resources, you can compare the effects of market volatilities on Lomiko Metals and Jourdan Resources 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 Jourdan Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and Jourdan Resources.
Diversification Opportunities for Lomiko Metals and Jourdan Resources
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lomiko and Jourdan is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Jourdan Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jourdan 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 Jourdan Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jourdan Resources has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Jourdan Resources go up and down completely randomly.
Pair Corralation between Lomiko Metals and Jourdan Resources
Assuming the 90 days horizon Lomiko Metals is expected to generate 14.5 times more return on investment than Jourdan Resources. However, Lomiko Metals is 14.5 times more volatile than Jourdan Resources. It trades about 0.18 of its potential returns per unit of risk. Jourdan Resources is currently generating about 0.02 per unit of risk. If you would invest 20.00 in Lomiko Metals on September 3, 2024 and sell it today you would lose (10.80) from holding Lomiko Metals or give up 54.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lomiko Metals vs. Jourdan Resources
Performance |
| Timeline |
| Lomiko Metals |
| Jourdan Resources |
Lomiko Metals and Jourdan Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lomiko Metals and Jourdan Resources
The main advantage of trading using opposite Lomiko Metals and Jourdan Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, Jourdan Resources 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 Jourdan Resources will offset losses from the drop in Jourdan Resources' long position.| Lomiko Metals vs. ZincX Resources Corp | Lomiko Metals vs. Mundoro Capital | Lomiko Metals vs. Strategic Resources | Lomiko Metals vs. Norra Metals Corp |
| Jourdan Resources vs. Bravada Gold | Jourdan Resources vs. Golden Goliath Resources | Jourdan Resources vs. Silver Spruce Resources | Jourdan Resources vs. Lake Resources NL |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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