Correlation Between Lion Group and Cathedra Bitcoin
Can any of the company-specific risk be diversified away by investing in both Lion Group and Cathedra 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 Cathedra 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 Cathedra Bitcoin, you can compare the effects of market volatilities on Lion Group and Cathedra 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 Cathedra Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Group and Cathedra Bitcoin.
Diversification Opportunities for Lion Group and Cathedra Bitcoin
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lion and Cathedra is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lion Group Holding and Cathedra Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathedra 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 Cathedra Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathedra Bitcoin has no effect on the direction of Lion Group i.e., Lion Group and Cathedra Bitcoin go up and down completely randomly.
Pair Corralation between Lion Group and Cathedra Bitcoin
Given the investment horizon of 90 days Lion Group Holding is expected to under-perform the Cathedra Bitcoin. In addition to that, Lion Group is 1.02 times more volatile than Cathedra Bitcoin. It trades about -0.02 of its total potential returns per unit of risk. Cathedra Bitcoin is currently generating about 0.07 per unit of volatility. If you would invest 5.46 in Cathedra Bitcoin on September 4, 2024 and sell it today you would earn a total of 0.26 from holding Cathedra Bitcoin or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Group Holding vs. Cathedra Bitcoin
Performance |
| Timeline |
| Lion Group Holding |
| Cathedra Bitcoin |
Lion Group and Cathedra Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Group and Cathedra Bitcoin
The main advantage of trading using opposite Lion Group and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Group position performs unexpectedly, Cathedra 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 Cathedra Bitcoin will offset losses from the drop in Cathedra Bitcoin's long position.| Lion Group vs. Magic Empire Global | Lion Group vs. Netcapital | Lion Group vs. Mercurity Fintech Holding | Lion Group vs. Applied Blockchain |
| Cathedra Bitcoin vs. Arcane Crypto AB | Cathedra Bitcoin vs. Cypherpunk Holdings | Cathedra Bitcoin vs. CreditRiskMonitorCom | Cathedra Bitcoin vs. SPENN Technology AS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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