Correlation Between Tartisan Nickel and Lithium Ionic

Can any of the company-specific risk be diversified away by investing in both Tartisan Nickel and Lithium Ionic 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 Tartisan Nickel and Lithium Ionic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tartisan Nickel Corp and Lithium Ionic Corp, you can compare the effects of market volatilities on Tartisan Nickel and Lithium Ionic 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 Tartisan Nickel with a short position of Lithium Ionic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tartisan Nickel and Lithium Ionic.

Diversification Opportunities for Tartisan Nickel and Lithium Ionic

-0.36

Correlation Coefficient

Tartisan Nickel  Lithium Ionic

Very good diversification

The 3 months correlation between Tartisan and Lithium is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Tartisan Nickel Corp and Lithium Ionic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Ionic Corp and Tartisan Nickel 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 Tartisan Nickel Corp are associated (or correlated) with Lithium Ionic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Ionic Corp has no effect on the direction of Tartisan Nickel i.e., Tartisan Nickel and Lithium Ionic go up and down completely randomly.

Pair Corralation between Tartisan Nickel and Lithium Ionic

Assuming the 90 days horizon Tartisan Nickel Corp is expected to under-perform the Lithium Ionic. In addition to that, Tartisan Nickel is 1.12 times more volatile than Lithium Ionic Corp. It trades about 0.0 of its total potential returns per unit of risk. Lithium Ionic Corp is currently generating about 0.03 per unit of volatility. If you would invest  63.00  in Lithium Ionic Corp on December 1, 2024 and sell it today you would earn a total of  2.00  from holding Lithium Ionic Corp or generate 3.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Tartisan Nickel Corp  vs.  Lithium Ionic Corp

Tartisan Nickel Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tartisan Nickel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Tartisan Nickel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Lithium Ionic Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lithium Ionic Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Lithium Ionic may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Tartisan Nickel and Lithium Ionic

The main advantage of trading using opposite Tartisan Nickel and Lithium Ionic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tartisan Nickel position performs unexpectedly, Lithium Ionic 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 Lithium Ionic will offset losses from the drop in Lithium Ionic's long position.

The idea behind Tartisan Nickel Corp and Lithium Ionic Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.