Correlation Between Stria Lithium and Juggernaut Exploration
Can any of the company-specific risk be diversified away by investing in both Stria Lithium and Juggernaut Exploration 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 Juggernaut Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stria Lithium and Juggernaut Exploration, you can compare the effects of market volatilities on Stria Lithium and Juggernaut Exploration 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 Juggernaut Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stria Lithium and Juggernaut Exploration.
Diversification Opportunities for Stria Lithium and Juggernaut Exploration
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stria and Juggernaut is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Stria Lithium and Juggernaut Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juggernaut Exploration 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 Juggernaut Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juggernaut Exploration has no effect on the direction of Stria Lithium i.e., Stria Lithium and Juggernaut Exploration go up and down completely randomly.
Pair Corralation between Stria Lithium and Juggernaut Exploration
Assuming the 90 days horizon Stria Lithium is expected to generate 0.71 times more return on investment than Juggernaut Exploration. However, Stria Lithium is 1.41 times less risky than Juggernaut Exploration. It trades about 0.02 of its potential returns per unit of risk. Juggernaut Exploration is currently generating about -0.17 per unit of risk. If you would invest 4.20 in Stria Lithium on August 29, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stria Lithium vs. Juggernaut Exploration
Performance |
| Timeline |
| Stria Lithium |
| Juggernaut Exploration |
Stria Lithium and Juggernaut Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stria Lithium and Juggernaut Exploration
The main advantage of trading using opposite Stria Lithium and Juggernaut Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stria Lithium position performs unexpectedly, Juggernaut Exploration 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 Juggernaut Exploration will offset losses from the drop in Juggernaut Exploration's long position.| Stria Lithium vs. Premium Nickel Resources | Stria Lithium vs. Juggernaut Exploration | Stria Lithium vs. Intrepid Metals Corp | Stria Lithium vs. Group Ten 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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