Correlation Between Lithium Power and IGO
Can any of the company-specific risk be diversified away by investing in both Lithium Power and IGO 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 Lithium Power and IGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lithium Power International and IGO Limited, you can compare the effects of market volatilities on Lithium Power and IGO 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 Lithium Power with a short position of IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lithium Power and IGO.
Diversification Opportunities for Lithium Power and IGO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lithium and IGO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lithium Power International and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited and Lithium Power 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 Lithium Power International are associated (or correlated) with IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of Lithium Power i.e., Lithium Power and IGO go up and down completely randomly.
Pair Corralation between Lithium Power and IGO
If you would invest (100.00) in Lithium Power International on December 6, 2024 and sell it today you would earn a total of 100.00 from holding Lithium Power International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lithium Power International vs. IGO Limited
Performance |
| Timeline |
| Lithium Power Intern |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| IGO Limited |
Lithium Power and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lithium Power and IGO
The main advantage of trading using opposite Lithium Power and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lithium Power position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO's long position.| Lithium Power vs. Macmahon Holdings Limited | ||
| Lithium Power vs. Rokmaster Resources Corp | ||
| Lithium Power vs. Hudson Resources | ||
| Lithium Power vs. Thunder Gold Corp |
| IGO vs. Qubec Nickel Corp | ||
| IGO vs. Nickel Mines Limited | ||
| IGO vs. Mineral Resources Limited | ||
| IGO vs. Surge Copper 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |