Correlation Between Lithium Argentina and Graphjet Technology

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

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

Diversification Opportunities for Lithium Argentina and Graphjet Technology

0.27

Correlation Coefficient

Lithium Argentina  Graphjet Technology

Modest diversification

The 3 months correlation between Lithium and Graphjet is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lithium Argentina AG and Graphjet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphjet Technology and Lithium Argentina 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 Lithium Argentina AG are associated (or correlated) with Graphjet Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphjet Technology has no effect on the direction of Lithium Argentina i.e., Lithium Argentina and Graphjet Technology go up and down completely randomly.

Pair Corralation between Lithium Argentina and Graphjet Technology

Considering the 90-day investment horizon Lithium Argentina AG is expected to generate 0.63 times more return on investment than Graphjet Technology. However, Lithium Argentina AG is 1.59 times less risky than Graphjet Technology. It trades about 0.09 of its potential returns per unit of risk. Graphjet Technology is currently generating about -0.08 per unit of risk. If you would invest  329.00  in Lithium Argentina AG on August 16, 2025 and sell it today you would earn a total of  90.00  from holding Lithium Argentina AG or generate 27.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Lithium Argentina AG  vs.  Graphjet Technology

Lithium Argentina

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lithium Argentina AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Lithium Argentina reported solid returns over the last few months and may actually be approaching a breakup point.

Graphjet Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Graphjet Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Lithium Argentina and Graphjet Technology

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

The idea behind Lithium Argentina AG and Graphjet Technology 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.