Correlation Between INTEL and Lithium One
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By analyzing existing cross correlation between INTEL P 48 and Lithium One Metals, you can compare the effects of market volatilities on INTEL and Lithium One 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 INTEL with a short position of Lithium One. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEL and Lithium One.
Diversification Opportunities for INTEL and Lithium One
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INTEL and Lithium is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding INTEL P 48 and Lithium One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium One Metals and INTEL 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 INTEL P 48 are associated (or correlated) with Lithium One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium One Metals has no effect on the direction of INTEL i.e., INTEL and Lithium One go up and down completely randomly.
Pair Corralation between INTEL and Lithium One
Assuming the 90 days trading horizon INTEL P 48 is expected to generate 0.15 times more return on investment than Lithium One. However, INTEL P 48 is 6.89 times less risky than Lithium One. It trades about 0.21 of its potential returns per unit of risk. Lithium One Metals is currently generating about -0.08 per unit of risk. If you would invest 8,693 in INTEL P 48 on August 30, 2024 and sell it today you would earn a total of 575.00 from holding INTEL P 48 or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
INTEL P 48 vs. Lithium One Metals
Performance |
| Timeline |
| INTEL P 48 |
| Lithium One Metals |
INTEL and Lithium One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTEL and Lithium One
The main advantage of trading using opposite INTEL and Lithium One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL position performs unexpectedly, Lithium One 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 One will offset losses from the drop in Lithium One's long position.The idea behind INTEL P 48 and Lithium One Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lithium One vs. AMCON Distributing | Lithium One vs. Tyson Foods | Lithium One vs. Q2 Holdings | Lithium One vs. Pinterest |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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