Correlation Between ZincX Resources and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both ZincX Resources and Lomiko 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 ZincX Resources and Lomiko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZincX Resources Corp and Lomiko Metals, you can compare the effects of market volatilities on ZincX Resources and Lomiko 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 ZincX Resources with a short position of Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZincX Resources and Lomiko Metals.
Diversification Opportunities for ZincX Resources and Lomiko Metals
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZincX and Lomiko is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ZincX Resources Corp and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko Metals and ZincX Resources 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 ZincX Resources Corp are associated (or correlated) with Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of ZincX Resources i.e., ZincX Resources and Lomiko Metals go up and down completely randomly.
Pair Corralation between ZincX Resources and Lomiko Metals
Assuming the 90 days horizon ZincX Resources Corp is expected to generate 1.44 times more return on investment than Lomiko Metals. However, ZincX Resources is 1.44 times more volatile than Lomiko Metals. It trades about 0.22 of its potential returns per unit of risk. Lomiko Metals is currently generating about 0.14 per unit of risk. If you would invest 5.00 in ZincX Resources Corp on November 3, 2024 and sell it today you would earn a total of 2.00 from holding ZincX Resources Corp or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZincX Resources Corp vs. Lomiko Metals
Performance |
| Timeline |
| ZincX Resources Corp |
| Lomiko Metals |
ZincX Resources and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZincX Resources and Lomiko Metals
The main advantage of trading using opposite ZincX Resources and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZincX Resources position performs unexpectedly, Lomiko 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| ZincX Resources vs. Hannan Metals | ZincX Resources vs. Atco Mining | ZincX Resources vs. Leading Edge Materials | ZincX Resources vs. Arianne Phosphate |
| Lomiko Metals vs. Hannan Metals | Lomiko Metals vs. Atco Mining | Lomiko Metals vs. Leading Edge Materials | Lomiko Metals vs. Arianne Phosphate |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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