Correlation Between Lion Biotechnologies and Pick N
Can any of the company-specific risk be diversified away by investing in both Lion Biotechnologies and Pick N 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 Pick N into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Biotechnologies and Pick n Pay, you can compare the effects of market volatilities on Lion Biotechnologies and Pick N 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 Pick N. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Biotechnologies and Pick N.
Diversification Opportunities for Lion Biotechnologies and Pick N
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and Pick is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Lion Biotechnologies and Pick n Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pick n Pay 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 Pick N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pick n Pay has no effect on the direction of Lion Biotechnologies i.e., Lion Biotechnologies and Pick N go up and down completely randomly.
Pair Corralation between Lion Biotechnologies and Pick N
Assuming the 90 days trading horizon Lion Biotechnologies is expected to generate 1.76 times more return on investment than Pick N. However, Lion Biotechnologies is 1.76 times more volatile than Pick n Pay. It trades about 0.05 of its potential returns per unit of risk. Pick n Pay is currently generating about 0.06 per unit of risk. If you would invest 597.00 in Lion Biotechnologies on September 3, 2024 and sell it today you would earn a total of 269.00 from holding Lion Biotechnologies or generate 45.06% 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. Pick n Pay
Performance |
| Timeline |
| Lion Biotechnologies |
| Pick n Pay |
Lion Biotechnologies and Pick N Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Biotechnologies and Pick N
The main advantage of trading using opposite Lion Biotechnologies and Pick N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Biotechnologies position performs unexpectedly, Pick N 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 Pick N will offset losses from the drop in Pick N's long position.| Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc |
| Pick N vs. AIR PRODCHEMICALS | Pick N vs. ELECTRONIC ARTS | Pick N vs. Meiko Electronics Co | Pick N vs. Methode Electronics |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |