Correlation Between XTC Lithium and British Amer
Can any of the company-specific risk be diversified away by investing in both XTC Lithium and British Amer 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 British Amer 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 Bailador Technology Invest, you can compare the effects of market volatilities on XTC Lithium and British Amer 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 British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTC Lithium and British Amer.
Diversification Opportunities for XTC Lithium and British Amer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTC and British is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XTC Lithium Limited and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology 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 British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of XTC Lithium i.e., XTC Lithium and British Amer go up and down completely randomly.
Pair Corralation between XTC Lithium and British Amer
If you would invest 20.00 in XTC Lithium Limited on September 4, 2024 and sell it today you would earn a total of 0.00 from holding XTC Lithium Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
XTC Lithium Limited vs. Bailador Technology Invest
Performance |
| Timeline |
| XTC Lithium Limited |
| Bailador Technology |
XTC Lithium and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTC Lithium and British Amer
The main advantage of trading using opposite XTC Lithium and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTC Lithium position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| XTC Lithium vs. Bailador Technology Invest | XTC Lithium vs. TPG Telecom | XTC Lithium vs. Black Rock Mining | XTC Lithium vs. K2 Asset Management |
| British Amer vs. Westpac Banking | British Amer vs. Ecofibre | British Amer vs. Adriatic Metals Plc | British Amer vs. Australian Dairy Farms |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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