Correlation Between CHINA TONTINE and LION ONE
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE 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 CHINA TONTINE and LION ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and LION ONE METALS, you can compare the effects of market volatilities on CHINA TONTINE 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 CHINA TONTINE with a short position of LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and LION ONE.
Diversification Opportunities for CHINA TONTINE and LION ONE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and LION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES 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 CHINA TONTINE 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 CHINA TONTINE WINES 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 CHINA TONTINE i.e., CHINA TONTINE and LION ONE go up and down completely randomly.
Pair Corralation between CHINA TONTINE and LION ONE
If you would invest 7.00 in CHINA TONTINE WINES on August 28, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. LION ONE METALS
Performance |
| Timeline |
| CHINA TONTINE WINES |
| LION ONE METALS |
CHINA TONTINE and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and LION ONE
The main advantage of trading using opposite CHINA TONTINE and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE 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.| CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings | CHINA TONTINE vs. Origin Agritech | CHINA TONTINE vs. SIVERS SEMICONDUCTORS AB |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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