Correlation Between Lion Biotechnologies and DBS Group
Can any of the company-specific risk be diversified away by investing in both Lion Biotechnologies and DBS Group 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 DBS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Biotechnologies and DBS Group Holdings, you can compare the effects of market volatilities on Lion Biotechnologies and DBS Group 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 DBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Biotechnologies and DBS Group.
Diversification Opportunities for Lion Biotechnologies and DBS Group
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and DBS is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lion Biotechnologies and DBS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBS Group Holdings 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 DBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBS Group Holdings has no effect on the direction of Lion Biotechnologies i.e., Lion Biotechnologies and DBS Group go up and down completely randomly.
Pair Corralation between Lion Biotechnologies and DBS Group
Assuming the 90 days trading horizon Lion Biotechnologies is expected to generate 3.64 times more return on investment than DBS Group. However, Lion Biotechnologies is 3.64 times more volatile than DBS Group Holdings. It trades about 0.05 of its potential returns per unit of risk. DBS Group Holdings is currently generating about 0.14 per unit of risk. If you would invest 735.00 in Lion Biotechnologies on September 3, 2024 and sell it today you would earn a total of 165.00 from holding Lion Biotechnologies or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Biotechnologies vs. DBS Group Holdings
Performance |
| Timeline |
| Lion Biotechnologies |
| DBS Group Holdings |
Lion Biotechnologies and DBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Biotechnologies and DBS Group
The main advantage of trading using opposite Lion Biotechnologies and DBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Biotechnologies position performs unexpectedly, DBS Group 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 DBS Group will offset losses from the drop in DBS Group's long position.| Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc |
| DBS Group vs. DFS Furniture PLC | DBS Group vs. GLG LIFE TECH | DBS Group vs. CENTURIA OFFICE REIT | DBS Group vs. Lion Biotechnologies |
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
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |