Correlation Between LithiumBank Resources and Mohawk Group

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

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

Diversification Opportunities for LithiumBank Resources and Mohawk Group

0.0

Correlation Coefficient

LithiumBank Resources  Mohawk Group

Pay attention - limited upside

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

Pair Corralation between LithiumBank Resources and Mohawk Group

If you would invest  58.00  in LithiumBank Resources Corp on February 28, 2024 and sell it today you would earn a total of  1.00  from holding LithiumBank Resources Corp or generate 1.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LithiumBank Resources Corp  vs.  Mohawk Group Holdings

LithiumBank Resources

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LithiumBank Resources Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward-looking signals, LithiumBank Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mohawk Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mohawk Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Mohawk Group is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with LithiumBank Resources and Mohawk Group

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

The idea behind LithiumBank Resources Corp and Mohawk Group Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.