Correlation Between Sigma Lithium and Integrated Media
Can any of the company-specific risk be diversified away by investing in both Sigma Lithium and Integrated Media 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 Sigma Lithium and Integrated Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sigma Lithium Resources and Integrated Media Technology, you can compare the effects of market volatilities on Sigma Lithium and Integrated Media 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 Sigma Lithium with a short position of Integrated Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sigma Lithium and Integrated Media.
Diversification Opportunities for Sigma Lithium and Integrated Media
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sigma and Integrated is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sigma Lithium Resources and Integrated Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Media Tec and Sigma Lithium 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 Sigma Lithium Resources are associated (or correlated) with Integrated Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Media Tec has no effect on the direction of Sigma Lithium i.e., Sigma Lithium and Integrated Media go up and down completely randomly.
Pair Corralation between Sigma Lithium and Integrated Media
Given the investment horizon of 90 days Sigma Lithium Resources is expected to generate 0.1 times more return on investment than Integrated Media. However, Sigma Lithium Resources is 10.24 times less risky than Integrated Media. It trades about 0.04 of its potential returns per unit of risk. Integrated Media Technology is currently generating about 0.0 per unit of risk. If you would invest 299.00 in Sigma Lithium Resources on June 5, 2025 and sell it today you would earn a total of 2.00 from holding Sigma Lithium Resources or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.06% |
| Values | Daily Returns |
Sigma Lithium Resources vs. Integrated Media Technology
Performance |
| Timeline |
| Sigma Lithium Resources |
Risk-Adjusted Performance
Soft
Weak | Strong |
| Integrated Media Tec |
Sigma Lithium and Integrated Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sigma Lithium and Integrated Media
The main advantage of trading using opposite Sigma Lithium and Integrated Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sigma Lithium position performs unexpectedly, Integrated Media 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 Integrated Media will offset losses from the drop in Integrated Media's long position.| Sigma Lithium vs. Ostin Technology Group | Sigma Lithium vs. Sanmina | Sigma Lithium vs. Plexus Corp | Sigma Lithium vs. Benchmark Electronics |
| Integrated Media vs. Ostin Technology Group | Integrated Media vs. MicroCloud Hologram | Integrated Media vs. Maris Tech | Integrated Media vs. Oriental Culture Holding |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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