Correlation Between TSOGO SUN and Lion One
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Lion One Metals, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Lion One.
Diversification Opportunities for TSOGO SUN and Lion One
Very weak diversification
The 3 months correlation between TSOGO and Lion is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING 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 TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Lion One go up and down completely randomly.
Pair Corralation between TSOGO SUN and Lion One
Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the Lion One. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 1.93 times less risky than Lion One. The stock trades about -0.34 of its potential returns per unit of risk. The Lion One Metals is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Lion One Metals on September 2, 2024 and sell it today you would lose (2.00) from holding Lion One Metals or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Lion One Metals
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Lion One Metals |
TSOGO SUN and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Lion One
The main advantage of trading using opposite TSOGO SUN and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB |
| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. Origin Agritech |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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