Correlation Between Ultra Resources and International Lithium

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

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

Diversification Opportunities for Ultra Resources and International Lithium

0.0

Correlation Coefficient

Ultra Resources  International Lithium

Pay attention - limited upside

The 3 months correlation between Ultra and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Resources and International Lithium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Lithium and Ultra 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 Ultra Resources are associated (or correlated) with International Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Lithium has no effect on the direction of Ultra Resources i.e., Ultra Resources and International Lithium go up and down completely randomly.

Pair Corralation between Ultra Resources and International Lithium

If you would invest  1.02  in International Lithium Corp on December 22, 2024 and sell it today you would lose (0.01) from holding International Lithium Corp or give up 0.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ultra Resources  vs.  International Lithium Corp

Ultra Resources

Risk-Adjusted Performance

Very Weak

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

International Lithium

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in International Lithium Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, International Lithium may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Ultra Resources and International Lithium

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

The idea behind Ultra Resources and International Lithium 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.