Correlation Between XTC Lithium and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both XTC Lithium and Cleanaway Waste 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 Cleanaway Waste 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 Cleanaway Waste Management, you can compare the effects of market volatilities on XTC Lithium and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTC Lithium and Cleanaway Waste.
Diversification Opportunities for XTC Lithium and Cleanaway Waste
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTC and Cleanaway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XTC Lithium Limited and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of XTC Lithium i.e., XTC Lithium and Cleanaway Waste go up and down completely randomly.
Pair Corralation between XTC Lithium and Cleanaway Waste
Assuming the 90 days trading horizon XTC Lithium Limited is expected to generate 7.06 times more return on investment than Cleanaway Waste. However, XTC Lithium is 7.06 times more volatile than Cleanaway Waste Management. It trades about 0.02 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.02 per unit of risk. If you would invest 72.00 in XTC Lithium Limited on September 4, 2024 and sell it today you would lose (52.00) from holding XTC Lithium Limited or give up 72.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
XTC Lithium Limited vs. Cleanaway Waste Management
Performance |
| Timeline |
| XTC Lithium Limited |
| Cleanaway Waste Mana |
XTC Lithium and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTC Lithium and Cleanaway Waste
The main advantage of trading using opposite XTC Lithium and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTC Lithium position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste'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 |
| Cleanaway Waste vs. Aneka Tambang Tbk | Cleanaway Waste vs. ANZ Group Holdings | Cleanaway Waste vs. Australia and New | Cleanaway Waste vs. ANZ Group Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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