Correlation Between St-Georges Eco-Mining and Lithium Ionic
Can any of the company-specific risk be diversified away by investing in both St-Georges Eco-Mining and Lithium Ionic 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 St-Georges Eco-Mining and Lithium Ionic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Georges Eco Mining Corp and Lithium Ionic Corp, you can compare the effects of market volatilities on St-Georges Eco-Mining and Lithium Ionic 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 St-Georges Eco-Mining with a short position of Lithium Ionic. Check out your portfolio center. Please also check ongoing floating volatility patterns of St-Georges Eco-Mining and Lithium Ionic.
Diversification Opportunities for St-Georges Eco-Mining and Lithium Ionic
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between St-Georges and Lithium is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding St Georges Eco Mining Corp and Lithium Ionic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Ionic Corp and St-Georges Eco-Mining 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 St Georges Eco Mining Corp are associated (or correlated) with Lithium Ionic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Ionic Corp has no effect on the direction of St-Georges Eco-Mining i.e., St-Georges Eco-Mining and Lithium Ionic go up and down completely randomly.
Pair Corralation between St-Georges Eco-Mining and Lithium Ionic
Assuming the 90 days horizon St Georges Eco Mining Corp is expected to generate 1.62 times more return on investment than Lithium Ionic. However, St-Georges Eco-Mining is 1.62 times more volatile than Lithium Ionic Corp. It trades about 0.01 of its potential returns per unit of risk. Lithium Ionic Corp is currently generating about -0.01 per unit of risk. If you would invest 15.00 in St Georges Eco Mining Corp on October 25, 2024 and sell it today you would lose (10.29) from holding St Georges Eco Mining Corp or give up 68.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
St Georges Eco Mining Corp vs. Lithium Ionic Corp
Performance |
| Timeline |
| St-Georges Eco-Mining |
| Lithium Ionic Corp |
St-Georges Eco-Mining and Lithium Ionic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St-Georges Eco-Mining and Lithium Ionic
The main advantage of trading using opposite St-Georges Eco-Mining and Lithium Ionic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St-Georges Eco-Mining position performs unexpectedly, Lithium Ionic 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 Lithium Ionic will offset losses from the drop in Lithium Ionic's long position.| St-Georges Eco-Mining vs. Artemis Resources | St-Georges Eco-Mining vs. Atco Mining | St-Georges Eco-Mining vs. American Lithium Minerals | St-Georges Eco-Mining vs. Surge Battery Metals |
| Lithium Ionic vs. IGO Limited | Lithium Ionic vs. Grid Metals Corp | Lithium Ionic vs. First American Silver | Lithium Ionic vs. Qubec Nickel 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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