Correlation Between FUTURE GAMING and Lion One
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and Lion One 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 FUTURE GAMING and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUTURE GAMING GRP and Lion One Metals, you can compare the effects of market volatilities on FUTURE GAMING and Lion One 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 FUTURE GAMING with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and Lion One.
Diversification Opportunities for FUTURE GAMING and Lion One
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FUTURE and Lion is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals and FUTURE GAMING 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 FUTURE GAMING GRP are associated (or correlated) with Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and Lion One go up and down completely randomly.
Pair Corralation between FUTURE GAMING and Lion One
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to generate 0.4 times more return on investment than Lion One. However, FUTURE GAMING GRP is 2.51 times less risky than Lion One. It trades about 0.13 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.05 per unit of risk. If you would invest 38.00 in FUTURE GAMING GRP on November 29, 2024 and sell it today you would earn a total of 3.00 from holding FUTURE GAMING GRP or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. Lion One Metals
Performance |
| Timeline |
| FUTURE GAMING GRP |
| Lion One Metals |
FUTURE GAMING and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and Lion One
The main advantage of trading using opposite FUTURE GAMING and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| FUTURE GAMING vs. Mount Gibson Iron | FUTURE GAMING vs. Dentsply Sirona | FUTURE GAMING vs. Eidesvik Offshore ASA | FUTURE GAMING vs. Columbia Sportswear |
| Lion One vs. CVW CLEANTECH INC | Lion One vs. Plastic Omnium | Lion One vs. Cleanaway Waste Management | Lion One vs. Khiron Life Sciences |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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