Correlation Between FEMALE HEALTH and Lion One
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Lion One Metals, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Lion One.
Diversification Opportunities for FEMALE HEALTH and Lion One
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FEMALE and Lion is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Lion One go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Lion One
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the Lion One. In addition to that, FEMALE HEALTH is 1.33 times more volatile than Lion One Metals. It trades about -0.04 of its total potential returns per unit of risk. Lion One Metals is currently generating about -0.02 per unit of volatility. If you would invest 52.00 in Lion One Metals on August 28, 2024 and sell it today you would lose (33.00) from holding Lion One Metals or give up 63.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Lion One Metals
Performance |
| Timeline |
| FEMALE HEALTH |
| Lion One Metals |
FEMALE HEALTH and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Lion One
The main advantage of trading using opposite FEMALE HEALTH and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. GREENX METALS LTD | FEMALE HEALTH vs. Cogent Communications Holdings | FEMALE HEALTH vs. Chunghwa Telecom Co | FEMALE HEALTH vs. Mobilezone Holding AG |
| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |