Correlation Between Stria Lithium and Global Atomic
Can any of the company-specific risk be diversified away by investing in both Stria Lithium and Global Atomic 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 Stria Lithium and Global Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stria Lithium and Global Atomic Corp, you can compare the effects of market volatilities on Stria Lithium and Global Atomic 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 Stria Lithium with a short position of Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stria Lithium and Global Atomic.
Diversification Opportunities for Stria Lithium and Global Atomic
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stria and Global is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stria Lithium and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic Corp and Stria Lithium 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 Stria Lithium are associated (or correlated) with Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of Stria Lithium i.e., Stria Lithium and Global Atomic go up and down completely randomly.
Pair Corralation between Stria Lithium and Global Atomic
Assuming the 90 days horizon Stria Lithium is expected to generate 3.38 times more return on investment than Global Atomic. However, Stria Lithium is 3.38 times more volatile than Global Atomic Corp. It trades about 0.02 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.09 per unit of risk. If you would invest 4.20 in Stria Lithium on August 25, 2024 and sell it today you would lose (0.06) from holding Stria Lithium or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stria Lithium vs. Global Atomic Corp
Performance |
| Timeline |
| Stria Lithium |
| Global Atomic Corp |
Stria Lithium and Global Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stria Lithium and Global Atomic
The main advantage of trading using opposite Stria Lithium and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stria Lithium position performs unexpectedly, Global Atomic 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 Atomic will offset losses from the drop in Global Atomic's long position.| Stria Lithium vs. Norra Metals Corp | Stria Lithium vs. Amarc Resources | Stria Lithium vs. ZincX Resources Corp | Stria Lithium vs. Nuinsco Resources Limited |
| Global Atomic vs. NGEx Minerals | Global Atomic vs. Boss Resources | Global Atomic vs. Forum Energy Metals | Global Atomic vs. Kraken Energy 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |