Correlation Between Lomiko Metals and Global Battery
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and Global Battery 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 Global Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and Global Battery Metals, you can compare the effects of market volatilities on Lomiko Metals and Global Battery 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 Global Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and Global Battery.
Diversification Opportunities for Lomiko Metals and Global Battery
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lomiko and Global is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Global Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Battery Metals 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 Global Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Battery Metals has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Global Battery go up and down completely randomly.
Pair Corralation between Lomiko Metals and Global Battery
Assuming the 90 days horizon Lomiko Metals is expected to generate 0.67 times more return on investment than Global Battery. However, Lomiko Metals is 1.5 times less risky than Global Battery. It trades about 0.18 of its potential returns per unit of risk. Global Battery Metals is currently generating about -0.01 per unit of risk. If you would invest 9.20 in Lomiko Metals on December 1, 2024 and sell it today you would earn a total of 2.80 from holding Lomiko Metals or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lomiko Metals vs. Global Battery Metals
Performance |
| Timeline |
| Lomiko Metals |
| Global Battery Metals |
Lomiko Metals and Global Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lomiko Metals and Global Battery
The main advantage of trading using opposite Lomiko Metals and Global Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, Global Battery 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 Global Battery will offset losses from the drop in Global Battery'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 |
| Global Battery vs. Altair International Corp | Global Battery vs. Lake Resources NL | Global Battery vs. Jourdan Resources | Global Battery vs. Lomiko Metals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |