Correlation Between Goliath Resources and Stria Lithium

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

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

Diversification Opportunities for Goliath Resources and Stria Lithium

0.77

Correlation Coefficient

Goliath Resources  Stria Lithium

Poor diversification

The 3 months correlation between Goliath and Stria is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Resources Limited and Stria Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stria Lithium and Goliath Resources 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 Goliath Resources Limited are associated (or correlated) with Stria Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stria Lithium has no effect on the direction of Goliath Resources i.e., Goliath Resources and Stria Lithium go up and down completely randomly.

Pair Corralation between Goliath Resources and Stria Lithium

Assuming the 90 days horizon Goliath Resources is expected to generate 7.46 times less return on investment than Stria Lithium. But when comparing it to its historical volatility, Goliath Resources Limited is 2.82 times less risky than Stria Lithium. It trades about 0.07 of its potential returns per unit of risk. Stria Lithium is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  8.92  in Stria Lithium on July 21, 2025 and sell it today you would earn a total of  16.08  from holding Stria Lithium or generate 180.27% return on investment over 90 days.

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

Goliath Resources Limited  vs.  Stria Lithium

Goliath Resources

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Goliath Resources Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Goliath Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Stria Lithium

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stria Lithium are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Stria Lithium reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Goliath Resources and Stria Lithium

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

The idea behind Goliath Resources Limited and Stria Lithium 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.