Correlation Between Lion One and Angus Gold
Can any of the company-specific risk be diversified away by investing in both Lion One and Angus Gold 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 Angus Gold 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 Angus Gold, you can compare the effects of market volatilities on Lion One and Angus Gold 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 Angus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Angus Gold.
Diversification Opportunities for Lion One and Angus Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and Angus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Angus Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angus Gold 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 Angus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angus Gold has no effect on the direction of Lion One i.e., Lion One and Angus Gold go up and down completely randomly.
Pair Corralation between Lion One and Angus Gold
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Angus Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 3.25 times less risky than Angus Gold. The otc stock trades about -0.19 of its potential returns per unit of risk. The Angus Gold is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Angus Gold on September 1, 2024 and sell it today you would lose (7.00) from holding Angus Gold or give up 19.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Angus Gold
Performance |
| Timeline |
| Lion One Metals |
| Angus Gold |
Lion One and Angus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Angus Gold
The main advantage of trading using opposite Lion One and Angus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Angus Gold 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 Angus Gold will offset losses from the drop in Angus Gold'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 |
| Angus Gold vs. Minnova Corp | Angus Gold vs. Argo Gold | Angus Gold vs. Advance Gold Corp | Angus Gold vs. Blue Star Gold |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |