Correlation Between Grand City and Lion One
Can any of the company-specific risk be diversified away by investing in both Grand City 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 Grand City and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand City Properties and Lion One Metals, you can compare the effects of market volatilities on Grand City 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 Grand City with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand City and Lion One.
Diversification Opportunities for Grand City and Lion One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and Lion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand City Properties 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 Grand City 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 Grand City Properties 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 Grand City i.e., Grand City and Lion One go up and down completely randomly.
Pair Corralation between Grand City and Lion One
If you would invest 18.00 in Lion One Metals on October 13, 2024 and sell it today you would earn a total of 3.00 from holding Lion One Metals or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Grand City Properties vs. Lion One Metals
Performance |
| Timeline |
| Grand City Properties |
| Lion One Metals |
Grand City and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand City and Lion One
The main advantage of trading using opposite Grand City and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand City 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.| Grand City vs. Allient | Grand City vs. Borr Drilling | Grand City vs. Vantage Drilling International | Grand City vs. Awilco Drilling PLC |
| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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