Correlation Between Sigma Lithium and Integral
Can any of the company-specific risk be diversified away by investing in both Sigma Lithium and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on Sigma Lithium and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sigma Lithium and Integral.
Diversification Opportunities for Sigma Lithium and Integral
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sigma and Integral is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sigma Lithium Resources and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Sigma Lithium i.e., Sigma Lithium and Integral go up and down completely randomly.
Pair Corralation between Sigma Lithium and Integral
Given the investment horizon of 90 days Sigma Lithium Resources is expected to under-perform the Integral. In addition to that, Sigma Lithium is 2.69 times more volatile than Integral Ad Science. It trades about -0.1 of its total potential returns per unit of risk. Integral Ad Science is currently generating about 0.11 per unit of volatility. If you would invest 725.00 in Integral Ad Science on May 2, 2025 and sell it today you would earn a total of 88.00 from holding Integral Ad Science or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sigma Lithium Resources vs. Integral Ad Science
Performance |
| Timeline |
| Sigma Lithium Resources |
| Integral Ad Science |
Sigma Lithium and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sigma Lithium and Integral
The main advantage of trading using opposite Sigma Lithium and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sigma Lithium position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| Sigma Lithium vs. Lithium Americas Corp | Sigma Lithium vs. Piedmont Lithium Ltd | Sigma Lithium vs. Standard Lithium | Sigma Lithium vs. NioCorp Developments Ltd |
| Integral vs. Interpublic Group of | Integral vs. Cimpress NV | Integral vs. Stagwell | Integral vs. Criteo Sa |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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