Correlation Between Bank of New York and Lithium Chile
Can any of the company-specific risk be diversified away by investing in both Bank of New York and Lithium Chile 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 Bank of New York and Lithium Chile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and Lithium Chile, you can compare the effects of market volatilities on Bank of New York and Lithium Chile 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 Bank of New York with a short position of Lithium Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Lithium Chile.
Diversification Opportunities for Bank of New York and Lithium Chile
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Lithium is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and Lithium Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Chile and Bank of New York 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 The Bank of are associated (or correlated) with Lithium Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Chile has no effect on the direction of Bank of New York i.e., Bank of New York and Lithium Chile go up and down completely randomly.
Pair Corralation between Bank of New York and Lithium Chile
Allowing for the 90-day total investment horizon The Bank of is expected to generate 0.25 times more return on investment than Lithium Chile. However, The Bank of is 4.01 times less risky than Lithium Chile. It trades about 0.04 of its potential returns per unit of risk. Lithium Chile is currently generating about -0.05 per unit of risk. If you would invest 10,558 in The Bank of on August 28, 2025 and sell it today you would earn a total of 249.00 from holding The Bank of or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. Lithium Chile
Performance |
| Timeline |
| Bank of New York |
| Lithium Chile |
Bank of New York and Lithium Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Lithium Chile
The main advantage of trading using opposite Bank of New York and Lithium Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Lithium Chile 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 Chile will offset losses from the drop in Lithium Chile's long position.| Bank of New York vs. Agriculture Natural Solutions | Bank of New York vs. Rheon Automatic Machinery | Bank of New York vs. China Construction Bank | Bank of New York vs. Dave Busters Entertainment |
| Lithium Chile vs. Technology Telecommunication Acquisition | Lithium Chile vs. Laurentian Bank of | Lithium Chile vs. NorthPoint Communications Group | Lithium Chile vs. B Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |