Correlation Between Lions Gate and Brera Holdings
Can any of the company-specific risk be diversified away by investing in both Lions Gate and Brera Holdings 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 Lions Gate and Brera Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lions Gate Entertainment and Brera Holdings PLC, you can compare the effects of market volatilities on Lions Gate and Brera Holdings 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 Lions Gate with a short position of Brera Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lions Gate and Brera Holdings.
Diversification Opportunities for Lions Gate and Brera Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lions and Brera is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lions Gate Entertainment and Brera Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brera Holdings PLC and Lions Gate 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 Lions Gate Entertainment are associated (or correlated) with Brera Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brera Holdings PLC has no effect on the direction of Lions Gate i.e., Lions Gate and Brera Holdings go up and down completely randomly.
Pair Corralation between Lions Gate and Brera Holdings
Assuming the 90 days horizon Lions Gate Entertainment is expected to generate 0.37 times more return on investment than Brera Holdings. However, Lions Gate Entertainment is 2.7 times less risky than Brera Holdings. It trades about 0.04 of its potential returns per unit of risk. Brera Holdings PLC is currently generating about 0.0 per unit of risk. If you would invest 611.00 in Lions Gate Entertainment on August 30, 2024 and sell it today you would earn a total of 227.00 from holding Lions Gate Entertainment or generate 37.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.94% |
| Values | Daily Returns |
Lions Gate Entertainment vs. Brera Holdings PLC
Performance |
| Timeline |
| Lions Gate Entertainment |
| Brera Holdings PLC |
Lions Gate and Brera Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lions Gate and Brera Holdings
The main advantage of trading using opposite Lions Gate and Brera Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lions Gate position performs unexpectedly, Brera Holdings 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 Brera Holdings will offset losses from the drop in Brera Holdings' long position.| Lions Gate vs. Lions Gate Entertainment | Lions Gate vs. AMC Networks | Lions Gate vs. Altice USA | Lions Gate vs. Liberty Broadband Srs |
| Brera Holdings vs. Reading International B | Brera Holdings vs. Marcus | Brera Holdings vs. Reading International | Brera Holdings vs. LiveOne |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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