Correlation Between Lomiko Metals and Lion Copper
Can any of the company-specific risk be diversified away by investing in both Lomiko Metals and Lion Copper 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 Lomiko Metals and Lion Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lomiko Metals and Lion Copper and, you can compare the effects of market volatilities on Lomiko Metals and Lion Copper 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 Lomiko Metals with a short position of Lion Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lomiko Metals and Lion Copper.
Diversification Opportunities for Lomiko Metals and Lion Copper
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lomiko and Lion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Lion Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Copper and Lomiko Metals 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 Lomiko Metals are associated (or correlated) with Lion Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Copper has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Lion Copper go up and down completely randomly.
Pair Corralation between Lomiko Metals and Lion Copper
Assuming the 90 days horizon Lomiko Metals is expected to generate 22.78 times more return on investment than Lion Copper. However, Lomiko Metals is 22.78 times more volatile than Lion Copper and. It trades about 0.18 of its potential returns per unit of risk. Lion Copper and is currently generating about 0.04 per unit of risk. If you would invest 20.00 in Lomiko Metals on September 3, 2024 and sell it today you would lose (10.80) from holding Lomiko Metals or give up 54.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lomiko Metals vs. Lion Copper and
Performance |
| Timeline |
| Lomiko Metals |
| Lion Copper |
Lomiko Metals and Lion Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lomiko Metals and Lion Copper
The main advantage of trading using opposite Lomiko Metals and Lion Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lomiko Metals position performs unexpectedly, Lion Copper 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 Copper will offset losses from the drop in Lion Copper's long position.| Lomiko Metals vs. ZincX Resources Corp | Lomiko Metals vs. Mundoro Capital | Lomiko Metals vs. Strategic Resources | Lomiko Metals vs. Norra Metals Corp |
| Lion Copper vs. Qubec Nickel Corp | Lion Copper vs. IGO Limited | Lion Copper vs. Avarone Metals | Lion Copper vs. Adriatic Metals PLC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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