Correlation Between TMC The and Lilium Equity

Can any of the company-specific risk be diversified away by investing in both TMC The and Lilium Equity 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 TMC The and Lilium Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TMC the metals and Lilium Equity Warrants, you can compare the effects of market volatilities on TMC The and Lilium Equity 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 TMC The with a short position of Lilium Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMC The and Lilium Equity.

Diversification Opportunities for TMC The and Lilium Equity

0.0

Correlation Coefficient

TMC The  Lilium Equity

Pay attention - limited upside

The 3 months correlation between TMC and Lilium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TMC the metals and Lilium Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium Equity Warrants and TMC The 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 TMC the metals are associated (or correlated) with Lilium Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium Equity Warrants has no effect on the direction of TMC The i.e., TMC The and Lilium Equity go up and down completely randomly.

Pair Corralation between TMC The and Lilium Equity

If you would invest  65.00  in TMC the metals on May 6, 2025 and sell it today you would earn a total of  85.00  from holding TMC the metals or generate 130.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

TMC the metals  vs.  Lilium Equity Warrants

TMC the metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TMC the metals are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, TMC The showed solid returns over the last few months and may actually be approaching a breakup point.

Lilium Equity Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lilium Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Lilium Equity is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with TMC The and Lilium Equity

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

The idea behind TMC the metals and Lilium Equity Warrants 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.