Correlation Between Lion Chemtech and Green Cross
Can any of the company-specific risk be diversified away by investing in both Lion Chemtech and Green Cross 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 Lion Chemtech and Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Chemtech Co and Green Cross Medical, you can compare the effects of market volatilities on Lion Chemtech and Green Cross 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 Lion Chemtech with a short position of Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Chemtech and Green Cross.
Diversification Opportunities for Lion Chemtech and Green Cross
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Green is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lion Chemtech Co and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical and Lion Chemtech 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 Lion Chemtech Co are associated (or correlated) with Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of Lion Chemtech i.e., Lion Chemtech and Green Cross go up and down completely randomly.
Pair Corralation between Lion Chemtech and Green Cross
Assuming the 90 days trading horizon Lion Chemtech Co is expected to generate 1.35 times more return on investment than Green Cross. However, Lion Chemtech is 1.35 times more volatile than Green Cross Medical. It trades about 0.15 of its potential returns per unit of risk. Green Cross Medical is currently generating about -0.1 per unit of risk. If you would invest 232,500 in Lion Chemtech Co on September 22, 2024 and sell it today you would earn a total of 53,500 from holding Lion Chemtech Co or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Chemtech Co vs. Green Cross Medical
Performance |
| Timeline |
| Lion Chemtech |
| Green Cross Medical |
Lion Chemtech and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Chemtech and Green Cross
The main advantage of trading using opposite Lion Chemtech and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Chemtech position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| Lion Chemtech vs. Kuk Young GM | Lion Chemtech vs. Nature and Environment | Lion Chemtech vs. Cheryong Industrial CoLtd |
| Green Cross vs. DIO Corporation | Green Cross vs. Medy Tox | Green Cross vs. InBody CoLtd | Green Cross vs. Soulbrain Holdings Co |
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 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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |