Correlation Between Lion Biotechnologies and MSCI WORLD
Can any of the company-specific risk be diversified away by investing in both Lion Biotechnologies and MSCI WORLD 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 MSCI WORLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Biotechnologies and MSCI WORLD CLIMATE, you can compare the effects of market volatilities on Lion Biotechnologies and MSCI WORLD 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 MSCI WORLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Biotechnologies and MSCI WORLD.
Diversification Opportunities for Lion Biotechnologies and MSCI WORLD
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and MSCI is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lion Biotechnologies and MSCI WORLD CLIMATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI WORLD CLIMATE 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 MSCI WORLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI WORLD CLIMATE has no effect on the direction of Lion Biotechnologies i.e., Lion Biotechnologies and MSCI WORLD go up and down completely randomly.
Pair Corralation between Lion Biotechnologies and MSCI WORLD
Assuming the 90 days trading horizon Lion Biotechnologies is expected to under-perform the MSCI WORLD. In addition to that, Lion Biotechnologies is 1.6 times more volatile than MSCI WORLD CLIMATE. It trades about -0.19 of its total potential returns per unit of risk. MSCI WORLD CLIMATE is currently generating about -0.09 per unit of volatility. If you would invest 8,150 in MSCI WORLD CLIMATE on September 12, 2024 and sell it today you would lose (500.00) from holding MSCI WORLD CLIMATE or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Biotechnologies vs. MSCI WORLD CLIMATE
Performance |
| Timeline |
| Lion Biotechnologies |
| MSCI WORLD CLIMATE |
Lion Biotechnologies and MSCI WORLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Biotechnologies and MSCI WORLD
The main advantage of trading using opposite Lion Biotechnologies and MSCI WORLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Biotechnologies position performs unexpectedly, MSCI WORLD 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 MSCI WORLD will offset losses from the drop in MSCI WORLD's long position.| Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc | Lion Biotechnologies vs. Apple Inc |
| MSCI WORLD vs. Lion Biotechnologies | MSCI WORLD vs. BANKINTER ADR 2007 | MSCI WORLD vs. SOFI TECHNOLOGIES | MSCI WORLD vs. ALIOR BANK |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |