Correlation Between CNJ Capital and Lion One
Can any of the company-specific risk be diversified away by investing in both CNJ Capital 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 CNJ Capital and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Lion One Metals, you can compare the effects of market volatilities on CNJ Capital 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 CNJ Capital with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Lion One.
Diversification Opportunities for CNJ Capital and Lion One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Lion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments 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 CNJ Capital 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 CNJ Capital Investments 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 CNJ Capital i.e., CNJ Capital and Lion One go up and down completely randomly.
Pair Corralation between CNJ Capital and Lion One
Assuming the 90 days trading horizon CNJ Capital Investments is expected to generate 1.33 times more return on investment than Lion One. However, CNJ Capital is 1.33 times more volatile than Lion One Metals. It trades about 0.08 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.04 per unit of risk. If you would invest 15.00 in CNJ Capital Investments on September 1, 2024 and sell it today you would earn a total of 31.00 from holding CNJ Capital Investments or generate 206.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 79.56% |
| Values | Daily Returns |
CNJ Capital Investments vs. Lion One Metals
Performance |
| Timeline |
| CNJ Capital Investments |
| Lion One Metals |
CNJ Capital and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Lion One
The main advantage of trading using opposite CNJ Capital and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital 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.| CNJ Capital vs. NovaGold Resources | CNJ Capital vs. HPQ Silicon Resources | CNJ Capital vs. Eastwood Bio Medical Canada | CNJ Capital vs. Diamond Fields Resources |
| Lion One vs. First Majestic Silver | Lion One vs. Ivanhoe Energy | Lion One vs. Orezone Gold Corp | Lion One vs. Faraday Copper 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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