Correlation Between Saint Jean and Ameriwest Lithium
Can any of the company-specific risk be diversified away by investing in both Saint Jean and Ameriwest Lithium 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 Saint Jean and Ameriwest Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saint Jean Carbon and Ameriwest Lithium, you can compare the effects of market volatilities on Saint Jean and Ameriwest Lithium 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 Saint Jean with a short position of Ameriwest Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saint Jean and Ameriwest Lithium.
Diversification Opportunities for Saint Jean and Ameriwest Lithium
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saint and Ameriwest is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saint Jean Carbon and Ameriwest Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriwest Lithium and Saint Jean 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 Saint Jean Carbon are associated (or correlated) with Ameriwest Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriwest Lithium has no effect on the direction of Saint Jean i.e., Saint Jean and Ameriwest Lithium go up and down completely randomly.
Pair Corralation between Saint Jean and Ameriwest Lithium
Assuming the 90 days horizon Saint Jean Carbon is expected to generate 2.11 times more return on investment than Ameriwest Lithium. However, Saint Jean is 2.11 times more volatile than Ameriwest Lithium. It trades about 0.04 of its potential returns per unit of risk. Ameriwest Lithium is currently generating about -0.05 per unit of risk. If you would invest 3.10 in Saint Jean Carbon on September 2, 2024 and sell it today you would lose (1.31) from holding Saint Jean Carbon or give up 42.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Saint Jean Carbon vs. Ameriwest Lithium
Performance |
| Timeline |
| Saint Jean Carbon |
| Ameriwest Lithium |
Saint Jean and Ameriwest Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saint Jean and Ameriwest Lithium
The main advantage of trading using opposite Saint Jean and Ameriwest Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saint Jean position performs unexpectedly, Ameriwest Lithium 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 Ameriwest Lithium will offset losses from the drop in Ameriwest Lithium's long position.| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals Corp |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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