Correlation Between Lion One and Cybin
Can any of the company-specific risk be diversified away by investing in both Lion One and Cybin 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 One and Cybin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Cybin Inc, you can compare the effects of market volatilities on Lion One and Cybin 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 One with a short position of Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Cybin.
Diversification Opportunities for Lion One and Cybin
Pay attention - limited upside
The 3 months correlation between Lion and Cybin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and Lion One 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 One Metals are associated (or correlated) with Cybin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cybin Inc has no effect on the direction of Lion One i.e., Lion One and Cybin go up and down completely randomly.
Pair Corralation between Lion One and Cybin
Assuming the 90 days horizon Lion One Metals is expected to generate 1.4 times more return on investment than Cybin. However, Lion One is 1.4 times more volatile than Cybin Inc. It trades about 0.2 of its potential returns per unit of risk. Cybin Inc is currently generating about 0.03 per unit of risk. If you would invest 25.00 in Lion One Metals on October 25, 2024 and sell it today you would earn a total of 5.00 from holding Lion One Metals or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Lion One Metals vs. Cybin Inc
Performance |
| Timeline |
| Lion One Metals |
| Cybin Inc |
Lion One and Cybin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Cybin
The main advantage of trading using opposite Lion One and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Cybin 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 Cybin will offset losses from the drop in Cybin's long position.The idea behind Lion One Metals and Cybin Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cybin vs. Brookfield Investments | Cybin vs. Partners Value Investments | Cybin vs. Air Canada | Cybin vs. Olympia Financial Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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