Correlation Between XTC Lithium and Aeon Metals
Can any of the company-specific risk be diversified away by investing in both XTC Lithium and Aeon Metals 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 XTC Lithium and Aeon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTC Lithium Limited and Aeon Metals, you can compare the effects of market volatilities on XTC Lithium and Aeon Metals 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 XTC Lithium with a short position of Aeon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTC Lithium and Aeon Metals.
Diversification Opportunities for XTC Lithium and Aeon Metals
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTC and Aeon is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding XTC Lithium Limited and Aeon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Metals and XTC 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 XTC Lithium Limited are associated (or correlated) with Aeon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Metals has no effect on the direction of XTC Lithium i.e., XTC Lithium and Aeon Metals go up and down completely randomly.
Pair Corralation between XTC Lithium and Aeon Metals
If you would invest 1.00 in Aeon Metals on September 3, 2024 and sell it today you would lose (0.50) from holding Aeon Metals or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTC Lithium Limited vs. Aeon Metals
Performance |
| Timeline |
| XTC Lithium Limited |
| Aeon Metals |
XTC Lithium and Aeon Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTC Lithium and Aeon Metals
The main advantage of trading using opposite XTC Lithium and Aeon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTC Lithium position performs unexpectedly, Aeon Metals 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 Aeon Metals will offset losses from the drop in Aeon Metals' long position.| XTC Lithium vs. Cleanaway Waste Management | XTC Lithium vs. Aspire Mining | XTC Lithium vs. M3 Mining | XTC Lithium vs. The Environmental Group |
| Aeon Metals vs. Northern Star Resources | Aeon Metals vs. Evolution Mining | Aeon Metals vs. Aneka Tambang Tbk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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