Correlation Between Lion Biotechnologies and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Lion Biotechnologies and GREENX METALS 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 Biotechnologies and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Biotechnologies and GREENX METALS LTD, you can compare the effects of market volatilities on Lion Biotechnologies and GREENX METALS 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 Biotechnologies with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Biotechnologies and GREENX METALS.
Diversification Opportunities for Lion Biotechnologies and GREENX METALS
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lion and GREENX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lion Biotechnologies and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD and Lion Biotechnologies 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 Biotechnologies are associated (or correlated) with GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Lion Biotechnologies i.e., Lion Biotechnologies and GREENX METALS go up and down completely randomly.
Pair Corralation between Lion Biotechnologies and GREENX METALS
Assuming the 90 days trading horizon Lion Biotechnologies is expected to under-perform the GREENX METALS. But the stock apears to be less risky and, when comparing its historical volatility, Lion Biotechnologies is 1.29 times less risky than GREENX METALS. The stock trades about -0.06 of its potential returns per unit of risk. The GREENX METALS LTD is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 43.00 in GREENX METALS LTD on November 18, 2024 and sell it today you would earn a total of 2.00 from holding GREENX METALS LTD or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Biotechnologies vs. GREENX METALS LTD
Performance |
| Timeline |
| Lion Biotechnologies |
| GREENX METALS LTD |
Lion Biotechnologies and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Biotechnologies and GREENX METALS
The main advantage of trading using opposite Lion Biotechnologies and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Biotechnologies position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Lion Biotechnologies vs. GAMING FAC SA | Lion Biotechnologies vs. Nok Airlines PCL | Lion Biotechnologies vs. AEGEAN AIRLINES | Lion Biotechnologies vs. Siamgas And Petrochemicals |
| GREENX METALS vs. The Home Depot | GREENX METALS vs. Thai Beverage Public | GREENX METALS vs. CanSino Biologics | GREENX METALS vs. VARIOUS EATERIES LS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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