Correlation Between Ambea AB and LION ONE
Can any of the company-specific risk be diversified away by investing in both Ambea AB 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 Ambea AB and LION ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambea AB and LION ONE METALS, you can compare the effects of market volatilities on Ambea AB 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 Ambea AB with a short position of LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambea AB and LION ONE.
Diversification Opportunities for Ambea AB and LION ONE
Excellent diversification
The 3 months correlation between Ambea and LION is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ambea AB 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 Ambea AB 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 Ambea AB 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 Ambea AB i.e., Ambea AB and LION ONE go up and down completely randomly.
Pair Corralation between Ambea AB and LION ONE
Assuming the 90 days horizon Ambea AB is expected to generate 0.45 times more return on investment than LION ONE. However, Ambea AB is 2.21 times less risky than LION ONE. It trades about 0.12 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 768.00 in Ambea AB on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Ambea AB or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Ambea AB vs. LION ONE METALS
Performance |
| Timeline |
| Ambea AB |
| LION ONE METALS |
Ambea AB and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambea AB and LION ONE
The main advantage of trading using opposite Ambea AB and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambea AB 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.| Ambea AB vs. LION ONE METALS | Ambea AB vs. SERI INDUSTRIAL EO | Ambea AB vs. ADRIATIC METALS LS 013355 | Ambea AB vs. MCEWEN MINING INC |
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.
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