Correlation Between Lithium Power and Surge Battery
Can any of the company-specific risk be diversified away by investing in both Lithium Power and Surge 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 Lithium Power and Surge Battery 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 Surge Battery Metals, you can compare the effects of market volatilities on Lithium Power and Surge 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 Lithium Power with a short position of Surge Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lithium Power and Surge Battery.
Diversification Opportunities for Lithium Power and Surge Battery
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lithium and Surge is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lithium Power International and Surge Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Battery Metals 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 Surge Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Battery Metals has no effect on the direction of Lithium Power i.e., Lithium Power and Surge Battery go up and down completely randomly.
Pair Corralation between Lithium Power and Surge Battery
If you would invest 29.00 in Surge Battery Metals on August 25, 2024 and sell it today you would lose (1.00) from holding Surge Battery Metals or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Lithium Power International vs. Surge Battery Metals
Performance |
| Timeline |
| Lithium Power Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Surge Battery Metals |
Lithium Power and Surge Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lithium Power and Surge Battery
The main advantage of trading using opposite Lithium Power and Surge Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lithium Power position performs unexpectedly, Surge 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 Surge Battery will offset losses from the drop in Surge Battery'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 |
| Surge Battery vs. Nevada Sunrise Gold | Surge Battery vs. Critical Elements | Surge Battery vs. Lithium Ionic Corp | Surge Battery vs. Green Technology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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