Correlation Between Lion One and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Lion One and Akanda Corp 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 Akanda Corp 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 Akanda Corp, you can compare the effects of market volatilities on Lion One and Akanda Corp 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 Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Akanda Corp.
Diversification Opportunities for Lion One and Akanda Corp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lion and Akanda is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp 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 Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Lion One i.e., Lion One and Akanda Corp go up and down completely randomly.
Pair Corralation between Lion One and Akanda Corp
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Akanda Corp. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.75 times less risky than Akanda Corp. The otc stock trades about -0.3 of its potential returns per unit of risk. The Akanda Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Akanda Corp on August 29, 2024 and sell it today you would lose (8.00) from holding Akanda Corp or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Akanda Corp
Performance |
| Timeline |
| Lion One Metals |
| Akanda Corp |
Lion One and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Akanda Corp
The main advantage of trading using opposite Lion One and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |