Correlation Between Lomiko Metals and Mason Graphite
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and Mason Graphite 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 Mason Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and Mason Graphite, you can compare the effects of market volatilities on Lomiko Metals and Mason Graphite 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 Mason Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and Mason Graphite.
Diversification Opportunities for Lomiko Metals and Mason Graphite
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lomiko and Mason is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Mason Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Graphite 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 Mason Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Graphite has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Mason Graphite go up and down completely randomly.
Pair Corralation between Lomiko Metals and Mason Graphite
Assuming the 90 days horizon Lomiko Metals is expected to generate 0.9 times more return on investment than Mason Graphite. However, Lomiko Metals is 1.12 times less risky than Mason Graphite. It trades about -0.15 of its potential returns per unit of risk. Mason Graphite is currently generating about -0.35 per unit of risk. If you would invest 11.00 in Lomiko Metals on August 30, 2024 and sell it today you would lose (2.00) from holding Lomiko Metals or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lomiko Metals vs. Mason Graphite
Performance |
| Timeline |
| Lomiko Metals |
| Mason Graphite |
Lomiko Metals and Mason Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lomiko Metals and Mason Graphite
The main advantage of trading using opposite Lomiko Metals and Mason Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, Mason Graphite 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 Mason Graphite will offset losses from the drop in Mason Graphite's long position.| Lomiko Metals vs. ZincX Resources Corp | Lomiko Metals vs. Mundoro Capital | Lomiko Metals vs. Strategic Resources | Lomiko Metals vs. Norra Metals Corp |
| Mason Graphite vs. Northern Graphite | Mason Graphite vs. Graphite One | Mason Graphite vs. Lomiko Metals | Mason Graphite vs. IGO Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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