Correlation Between Lion One and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Lion One and Endurance 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 Endurance 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 Endurance Gold, you can compare the effects of market volatilities on Lion One and Endurance 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 Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Endurance Gold.
Diversification Opportunities for Lion One and Endurance Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and Endurance is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance 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 Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold has no effect on the direction of Lion One i.e., Lion One and Endurance Gold go up and down completely randomly.
Pair Corralation between Lion One and Endurance Gold
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Endurance Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.14 times less risky than Endurance Gold. The otc stock trades about -0.3 of its potential returns per unit of risk. The Endurance Gold is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Endurance Gold on August 30, 2024 and sell it today you would lose (1.00) from holding Endurance Gold or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lion One Metals vs. Endurance Gold
Performance |
| Timeline |
| Lion One Metals |
| Endurance Gold |
Lion One and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Endurance Gold
The main advantage of trading using opposite Lion One and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Endurance 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| Lion One vs. Silver Hammer Mining | Lion One vs. Reyna Silver Corp | Lion One vs. Guanajuato Silver | Lion One vs. Silver One Resources |
| Endurance Gold vs. Red Pine Exploration | Endurance Gold vs. Altamira Gold Corp | Endurance Gold vs. Grande Portage Resources | Endurance Gold vs. Tectonic Metals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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