Correlation Between Lion Group and XTRA Bitcoin
Can any of the company-specific risk be diversified away by investing in both Lion Group and XTRA Bitcoin 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 Lion Group and XTRA Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Group Holding and XTRA Bitcoin, you can compare the effects of market volatilities on Lion Group and XTRA Bitcoin 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 Lion Group with a short position of XTRA Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Group and XTRA Bitcoin.
Diversification Opportunities for Lion Group and XTRA Bitcoin
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and XTRA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lion Group Holding and XTRA Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRA Bitcoin and Lion Group 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 Lion Group Holding are associated (or correlated) with XTRA Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRA Bitcoin has no effect on the direction of Lion Group i.e., Lion Group and XTRA Bitcoin go up and down completely randomly.
Pair Corralation between Lion Group and XTRA Bitcoin
Given the investment horizon of 90 days Lion Group Holding is expected to under-perform the XTRA Bitcoin. But the stock apears to be less risky and, when comparing its historical volatility, Lion Group Holding is 1.74 times less risky than XTRA Bitcoin. The stock trades about -0.09 of its potential returns per unit of risk. The XTRA Bitcoin is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 0.20 in XTRA Bitcoin on September 3, 2024 and sell it today you would lose (0.06) from holding XTRA Bitcoin or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Group Holding vs. XTRA Bitcoin
Performance |
| Timeline |
| Lion Group Holding |
| XTRA Bitcoin |
Lion Group and XTRA Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Group and XTRA Bitcoin
The main advantage of trading using opposite Lion Group and XTRA Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Group position performs unexpectedly, XTRA Bitcoin 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 XTRA Bitcoin will offset losses from the drop in XTRA Bitcoin's long position.| Lion Group vs. Riot Blockchain | Lion Group vs. Marathon Digital Holdings | Lion Group vs. Applied Blockchain | Lion Group vs. Hut 8 Corp |
| XTRA Bitcoin vs. Coin Citadel | XTRA Bitcoin vs. ICOA Inc | XTRA Bitcoin vs. NSAV Holding | XTRA Bitcoin vs. Lion Group Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |