Correlation Between Church Dwight and Lion One
Can any of the company-specific risk be diversified away by investing in both Church Dwight 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 Church Dwight and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Church Dwight and Lion One Metals, you can compare the effects of market volatilities on Church Dwight 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 Church Dwight with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Church Dwight and Lion One.
Diversification Opportunities for Church Dwight and Lion One
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Church and Lion is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Church Dwight 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 Church Dwight 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 Church Dwight 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 Church Dwight i.e., Church Dwight and Lion One go up and down completely randomly.
Pair Corralation between Church Dwight and Lion One
Considering the 90-day investment horizon Church Dwight is expected to generate 0.42 times more return on investment than Lion One. However, Church Dwight is 2.39 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 -0.12 per unit of risk. If you would invest 10,412 in Church Dwight on August 28, 2024 and sell it today you would earn a total of 626.00 from holding Church Dwight or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Church Dwight vs. Lion One Metals
Performance |
| Timeline |
| Church Dwight |
| Lion One Metals |
Church Dwight and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Church Dwight and Lion One
The main advantage of trading using opposite Church Dwight and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Church Dwight 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.| Church Dwight vs. Kimberly Clark | Church Dwight vs. Colgate Palmolive | Church Dwight vs. Unilever PLC ADR | Church Dwight vs. Procter Gamble |
| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
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
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |