Correlation Between InterContinental and Lion One
Can any of the company-specific risk be diversified away by investing in both InterContinental 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 InterContinental and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InterContinental Hotels Group and Lion One Metals, you can compare the effects of market volatilities on InterContinental 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 InterContinental with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterContinental and Lion One.
Diversification Opportunities for InterContinental and Lion One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InterContinental and Lion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels 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 InterContinental 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 InterContinental Hotels 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 InterContinental i.e., InterContinental and Lion One go up and down completely randomly.
Pair Corralation between InterContinental and Lion One
Assuming the 90 days trading horizon InterContinental Hotels Group is expected to generate 0.51 times more return on investment than Lion One. However, InterContinental Hotels Group is 1.96 times less risky than Lion One. It trades about 0.38 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.11 per unit of risk. If you would invest 10,200 in InterContinental Hotels Group on August 31, 2024 and sell it today you would earn a total of 1,600 from holding InterContinental Hotels Group or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterContinental Hotels Group vs. Lion One Metals
Performance |
| Timeline |
| InterContinental Hotels |
| Lion One Metals |
InterContinental and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterContinental and Lion One
The main advantage of trading using opposite InterContinental and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterContinental 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.| InterContinental vs. QURATE RETAIL INC | InterContinental vs. PACIFIC ONLINE | InterContinental vs. CODERE ONLINE LUX | InterContinental vs. JIAHUA STORES |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world |