Correlation Between Banco Ita and Lion One
Can any of the company-specific risk be diversified away by investing in both Banco Ita 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 Banco Ita and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Ita Chile and Lion One Metals, you can compare the effects of market volatilities on Banco Ita 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 Banco Ita with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Ita and Lion One.
Diversification Opportunities for Banco Ita and Lion One
Good diversification
The 3 months correlation between Banco and Lion is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Banco Ita Chile 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 Banco Ita 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 Banco Ita Chile 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 Banco Ita i.e., Banco Ita and Lion One go up and down completely randomly.
Pair Corralation between Banco Ita and Lion One
Given the investment horizon of 90 days Banco Ita Chile is expected to generate 0.48 times more return on investment than Lion One. However, Banco Ita Chile is 2.08 times less risky than Lion One. It trades about 0.2 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.04 per unit of risk. If you would invest 338.00 in Banco Ita Chile on September 2, 2024 and sell it today you would earn a total of 39.00 from holding Banco Ita Chile or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.06% |
| Values | Daily Returns |
Banco Ita Chile vs. Lion One Metals
Performance |
| Timeline |
| Banco Ita Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lion One Metals |
Banco Ita and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Ita and Lion One
The main advantage of trading using opposite Banco Ita and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Ita 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.| Banco Ita vs. Pool Corporation | Banco Ita vs. Kite Realty Group | Banco Ita vs. Biglari Holdings | Banco Ita vs. Cedar Realty Trust |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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