Correlation Between Lomiko Metals and Lake Resources
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and Lake Resources 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 Lomiko Metals and Lake Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and Lake Resources NL, you can compare the effects of market volatilities on Lomiko Metals and Lake Resources 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 Lomiko Metals with a short position of Lake Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and Lake Resources.
Diversification Opportunities for Lomiko Metals and Lake Resources
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lomiko and Lake is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Lake Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Resources NL and Lomiko Metals 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 Lomiko Metals are associated (or correlated) with Lake Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Resources NL has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Lake Resources go up and down completely randomly.
Pair Corralation between Lomiko Metals and Lake Resources
Assuming the 90 days horizon Lomiko Metals is expected to generate 1.28 times more return on investment than Lake Resources. However, Lomiko Metals is 1.28 times more volatile than Lake Resources NL. It trades about 0.1 of its potential returns per unit of risk. Lake Resources NL is currently generating about -0.03 per unit of risk. If you would invest 8.90 in Lomiko Metals on November 22, 2024 and sell it today you would earn a total of 3.10 from holding Lomiko Metals or generate 34.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
Lomiko Metals vs. Lake Resources NL
Performance |
Timeline |
Lomiko Metals |
Lake Resources NL |
Lomiko Metals and Lake Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lomiko Metals and Lake Resources
The main advantage of trading using opposite Lomiko Metals and Lake Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, Lake Resources 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 Lake Resources will offset losses from the drop in Lake Resources' long position.Lomiko Metals vs. ZincX Resources Corp | ||
Lomiko Metals vs. Mundoro Capital | ||
Lomiko Metals vs. Strategic Resources | ||
Lomiko Metals vs. Norra Metals Corp |
Lake Resources vs. Montauk Renewables | ||
Lake Resources vs. SmartStop Self Storage | ||
Lake Resources vs. Aris Water Solutions | ||
Lake Resources vs. Asure Software |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |