Correlation Between Core Lithium and Corazon Mining

Can any of the company-specific risk be diversified away by investing in both Core Lithium and Corazon Mining 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 Core Lithium and Corazon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Core Lithium and Corazon Mining, you can compare the effects of market volatilities on Core Lithium and Corazon Mining 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 Core Lithium with a short position of Corazon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Lithium and Corazon Mining.

Diversification Opportunities for Core Lithium and Corazon Mining

-0.03

Correlation Coefficient

Core Lithium  Corazon Mining

Good diversification

The 3 months correlation between Core and Corazon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Core Lithium and Corazon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corazon Mining and Core 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 Core Lithium are associated (or correlated) with Corazon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corazon Mining has no effect on the direction of Core Lithium i.e., Core Lithium and Corazon Mining go up and down completely randomly.

Pair Corralation between Core Lithium and Corazon Mining

Assuming the 90 days horizon Core Lithium is expected to generate 26.27 times less return on investment than Corazon Mining. But when comparing it to its historical volatility, Core Lithium is 13.87 times less risky than Corazon Mining. It trades about 0.06 of its potential returns per unit of risk. Corazon Mining is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Corazon Mining on July 28, 2025 and sell it today you would earn a total of  0.00  from holding Corazon Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Core Lithium  vs.  Corazon Mining

Core Lithium

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Core Lithium are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Core Lithium reported solid returns over the last few months and may actually be approaching a breakup point.

Corazon Mining

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Corazon Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Corazon Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Core Lithium and Corazon Mining

The main advantage of trading using opposite Core Lithium and Corazon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Lithium position performs unexpectedly, Corazon Mining 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 Corazon Mining will offset losses from the drop in Corazon Mining's long position.

The idea behind Core Lithium and Corazon Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.