Correlation Between Global Crossing and Standard Lithium
Can any of the company-specific risk be diversified away by investing in both Global Crossing and Standard 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 Global Crossing and Standard Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and Standard Lithium, you can compare the effects of market volatilities on Global Crossing and Standard 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 Global Crossing with a short position of Standard Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and Standard Lithium.
Diversification Opportunities for Global Crossing and Standard Lithium
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Standard is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and Standard Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Lithium and Global Crossing 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 Global Crossing Airlines are associated (or correlated) with Standard Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Lithium has no effect on the direction of Global Crossing i.e., Global Crossing and Standard Lithium go up and down completely randomly.
Pair Corralation between Global Crossing and Standard Lithium
Assuming the 90 days trading horizon Global Crossing Airlines is expected to under-perform the Standard Lithium. But the stock apears to be less risky and, when comparing its historical volatility, Global Crossing Airlines is 1.95 times less risky than Standard Lithium. The stock trades about 0.0 of its potential returns per unit of risk. The Standard Lithium is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 406.00 in Standard Lithium on September 8, 2025 and sell it today you would earn a total of 223.00 from holding Standard Lithium or generate 54.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Crossing Airlines vs. Standard Lithium
Performance |
| Timeline |
| Global Crossing Airlines |
| Standard Lithium |
Global Crossing and Standard Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Crossing and Standard Lithium
The main advantage of trading using opposite Global Crossing and Standard Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing position performs unexpectedly, Standard 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 Standard Lithium will offset losses from the drop in Standard Lithium's long position.| Global Crossing vs. Netflix Inc CDR | Global Crossing vs. NVIDIA CDR | Global Crossing vs. Nvidia CDR | Global Crossing vs. Apple Inc CDR |
| Standard Lithium vs. North American Financial | Standard Lithium vs. National Bank of | Standard Lithium vs. Manulife Financial Corp | Standard Lithium vs. First National Financial |
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.
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