Correlation Between Logan Ridge and LithiumBank Resources
Can any of the company-specific risk be diversified away by investing in both Logan Ridge and LithiumBank 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 Logan Ridge and LithiumBank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and LithiumBank Resources Corp, you can compare the effects of market volatilities on Logan Ridge and LithiumBank 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 Logan Ridge with a short position of LithiumBank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and LithiumBank Resources.
Diversification Opportunities for Logan Ridge and LithiumBank Resources
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Logan and LithiumBank is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and LithiumBank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LithiumBank Resources and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with LithiumBank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LithiumBank Resources has no effect on the direction of Logan Ridge i.e., Logan Ridge and LithiumBank Resources go up and down completely randomly.
Pair Corralation between Logan Ridge and LithiumBank Resources
Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 0.31 times more return on investment than LithiumBank Resources. However, Logan Ridge Finance is 3.2 times less risky than LithiumBank Resources. It trades about 0.11 of its potential returns per unit of risk. LithiumBank Resources Corp is currently generating about -0.17 per unit of risk. If you would invest 2,168 in Logan Ridge Finance on September 2, 2024 and sell it today you would earn a total of 432.00 from holding Logan Ridge Finance or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. LithiumBank Resources Corp
Performance |
| Timeline |
| Logan Ridge Finance |
| LithiumBank Resources |
Logan Ridge and LithiumBank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and LithiumBank Resources
The main advantage of trading using opposite Logan Ridge and LithiumBank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, LithiumBank 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 LithiumBank Resources will offset losses from the drop in LithiumBank Resources' long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Focus Graphite | LithiumBank Resources vs. Mineral Res |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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