Correlation Between Global Battery and Trilogy Metals
Can any of the company-specific risk be diversified away by investing in both Global Battery and Trilogy Metals 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 Global Battery and Trilogy Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Battery Metals and Trilogy Metals, you can compare the effects of market volatilities on Global Battery and Trilogy Metals 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 Global Battery with a short position of Trilogy Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Battery and Trilogy Metals.
Diversification Opportunities for Global Battery and Trilogy Metals
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Trilogy is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Global Battery Metals and Trilogy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trilogy Metals and Global Battery 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 Global Battery Metals are associated (or correlated) with Trilogy Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trilogy Metals has no effect on the direction of Global Battery i.e., Global Battery and Trilogy Metals go up and down completely randomly.
Pair Corralation between Global Battery and Trilogy Metals
Assuming the 90 days horizon Global Battery is expected to generate 4.25 times less return on investment than Trilogy Metals. In addition to that, Global Battery is 1.72 times more volatile than Trilogy Metals. It trades about 0.01 of its total potential returns per unit of risk. Trilogy Metals is currently generating about 0.05 per unit of volatility. If you would invest 55.00 in Trilogy Metals on September 3, 2024 and sell it today you would earn a total of 68.00 from holding Trilogy Metals or generate 123.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global Battery Metals vs. Trilogy Metals
Performance |
| Timeline |
| Global Battery Metals |
| Trilogy Metals |
Global Battery and Trilogy Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Battery and Trilogy Metals
The main advantage of trading using opposite Global Battery and Trilogy Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Battery position performs unexpectedly, Trilogy Metals 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 Trilogy Metals will offset losses from the drop in Trilogy Metals' long position.| Global Battery vs. Altair International Corp | Global Battery vs. Lake Resources NL | Global Battery vs. Jourdan Resources | Global Battery vs. Lomiko Metals |
| Trilogy Metals vs. Fury Gold Mines | Trilogy Metals vs. EMX Royalty Corp | Trilogy Metals vs. Western Copper and | Trilogy Metals vs. Nevada King Gold |
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.
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