Correlation Between Brera Holdings and Lions Gate
Can any of the company-specific risk be diversified away by investing in both Brera Holdings and Lions Gate 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 Brera Holdings and Lions Gate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brera Holdings PLC and Lions Gate Entertainment, you can compare the effects of market volatilities on Brera Holdings and Lions Gate 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 Brera Holdings with a short position of Lions Gate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brera Holdings and Lions Gate.
Diversification Opportunities for Brera Holdings and Lions Gate
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brera and Lions is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Brera Holdings PLC and Lions Gate Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lions Gate Entertainment and Brera Holdings 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 Brera Holdings PLC are associated (or correlated) with Lions Gate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lions Gate Entertainment has no effect on the direction of Brera Holdings i.e., Brera Holdings and Lions Gate go up and down completely randomly.
Pair Corralation between Brera Holdings and Lions Gate
Given the investment horizon of 90 days Brera Holdings PLC is expected to under-perform the Lions Gate. In addition to that, Brera Holdings is 2.7 times more volatile than Lions Gate Entertainment. It trades about 0.0 of its total potential returns per unit of risk. Lions Gate Entertainment is currently generating about 0.04 per unit of volatility. If you would invest 611.00 in Lions Gate Entertainment on August 30, 2024 and sell it today you would earn a total of 227.00 from holding Lions Gate Entertainment or generate 37.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.94% |
| Values | Daily Returns |
Brera Holdings PLC vs. Lions Gate Entertainment
Performance |
| Timeline |
| Brera Holdings PLC |
| Lions Gate Entertainment |
Brera Holdings and Lions Gate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brera Holdings and Lions Gate
The main advantage of trading using opposite Brera Holdings and Lions Gate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brera Holdings position performs unexpectedly, Lions Gate 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 Lions Gate will offset losses from the drop in Lions Gate's long position.| Brera Holdings vs. Reading International B | Brera Holdings vs. Marcus | Brera Holdings vs. Reading International | Brera Holdings vs. LiveOne |
| Lions Gate vs. Lions Gate Entertainment | Lions Gate vs. AMC Networks | Lions Gate vs. Altice USA | Lions Gate vs. Liberty Broadband Srs |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |