Correlation Between Standard Lithium and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Standard Lithium and Lightspeed Commerce 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 Standard Lithium and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Lithium and Lightspeed Commerce, you can compare the effects of market volatilities on Standard Lithium and Lightspeed Commerce 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 Standard Lithium with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Lithium and Lightspeed Commerce.
Diversification Opportunities for Standard Lithium and Lightspeed Commerce
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Standard and Lightspeed is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Standard Lithium and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Standard 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 Standard Lithium are associated (or correlated) with Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of Standard Lithium i.e., Standard Lithium and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Standard Lithium and Lightspeed Commerce
Assuming the 90 days horizon Standard Lithium is expected to generate 2.05 times more return on investment than Lightspeed Commerce. However, Standard Lithium is 2.05 times more volatile than Lightspeed Commerce. It trades about 0.07 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about 0.05 per unit of risk. If you would invest 379.00 in Standard Lithium on August 13, 2025 and sell it today you would earn a total of 63.00 from holding Standard Lithium or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Lithium vs. Lightspeed Commerce
Performance |
| Timeline |
| Standard Lithium |
| Lightspeed Commerce |
Standard Lithium and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Lithium and Lightspeed Commerce
The main advantage of trading using opposite Standard Lithium and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Lithium position performs unexpectedly, Lightspeed Commerce 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 Lightspeed Commerce will offset losses from the drop in Lightspeed Commerce's long position.| Standard Lithium vs. Major Drilling Group | Standard Lithium vs. Trilogy Metals | Standard Lithium vs. Imperial Metals | Standard Lithium vs. Sigma Lithium Resources |
| Lightspeed Commerce vs. HIVE Digital Technologies | Lightspeed Commerce vs. Kraken Robotics | Lightspeed Commerce vs. Enghouse Systems | Lightspeed Commerce vs. Docebo Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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