Correlation Between SWISS WATER and Lion One
Can any of the company-specific risk be diversified away by investing in both SWISS WATER 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 SWISS WATER and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and Lion One Metals, you can compare the effects of market volatilities on SWISS WATER 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 SWISS WATER with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and Lion One.
Diversification Opportunities for SWISS WATER and Lion One
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SWISS and Lion is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE 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 SWISS WATER 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 SWISS WATER DECAFFCOFFEE 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 SWISS WATER i.e., SWISS WATER and Lion One go up and down completely randomly.
Pair Corralation between SWISS WATER and Lion One
Assuming the 90 days horizon SWISS WATER DECAFFCOFFEE is expected to generate 0.52 times more return on investment than Lion One. However, SWISS WATER DECAFFCOFFEE is 1.93 times less risky than Lion One. It trades about 0.06 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.07 per unit of risk. If you would invest 193.00 in SWISS WATER DECAFFCOFFEE on September 12, 2024 and sell it today you would earn a total of 69.00 from holding SWISS WATER DECAFFCOFFEE or generate 35.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SWISS WATER DECAFFCOFFEE vs. Lion One Metals
Performance |
| Timeline |
| SWISS WATER DECAFFCOFFEE |
| Lion One Metals |
SWISS WATER and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWISS WATER and Lion One
The main advantage of trading using opposite SWISS WATER and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER 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.| SWISS WATER vs. Chongqing Machinery Electric | SWISS WATER vs. Insteel Industries | SWISS WATER vs. RELIANCE STEEL AL | SWISS WATER vs. Hitachi Construction Machinery |
| Lion One vs. Franco Nevada | Lion One vs. Superior Plus Corp | Lion One vs. SIVERS SEMICONDUCTORS AB | Lion One vs. Norsk Hydro ASA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |