Correlation Between Golden Matrix and Lion One
Can any of the company-specific risk be diversified away by investing in both Golden Matrix 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 Golden Matrix and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Matrix Group and Lion One Metals, you can compare the effects of market volatilities on Golden Matrix 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 Golden Matrix with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and Lion One.
Diversification Opportunities for Golden Matrix and Lion One
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golden and Lion is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group 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 Golden Matrix 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 Golden Matrix Group 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 Golden Matrix i.e., Golden Matrix and Lion One go up and down completely randomly.
Pair Corralation between Golden Matrix and Lion One
Given the investment horizon of 90 days Golden Matrix Group is expected to generate 1.44 times more return on investment than Lion One. However, Golden Matrix is 1.44 times more volatile than Lion One Metals. It trades about 0.03 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.03 per unit of risk. If you would invest 230.00 in Golden Matrix Group on August 26, 2024 and sell it today you would earn a total of 40.00 from holding Golden Matrix Group or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Matrix Group vs. Lion One Metals
Performance |
| Timeline |
| Golden Matrix Group |
| Lion One Metals |
Golden Matrix and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and Lion One
The main advantage of trading using opposite Golden Matrix and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix 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.| Golden Matrix vs. AEye Inc | Golden Matrix vs. Arqit Quantum Warrants | Golden Matrix vs. Xos Equity Warrants |
| Lion One vs. Ascendant Resources | Lion One vs. Cantex Mine Development | Lion One vs. Amarc Resources | Lion One vs. Sterling Metals 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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