Correlation Between Lion One and FG Annuities
Can any of the company-specific risk be diversified away by investing in both Lion One and FG Annuities 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 FG Annuities 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 FG Annuities Life, you can compare the effects of market volatilities on Lion One and FG Annuities 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 FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and FG Annuities.
Diversification Opportunities for Lion One and FG Annuities
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lion and FGN is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life 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 FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of Lion One i.e., Lion One and FG Annuities go up and down completely randomly.
Pair Corralation between Lion One and FG Annuities
Assuming the 90 days horizon Lion One Metals is expected to under-perform the FG Annuities. In addition to that, Lion One is 10.02 times more volatile than FG Annuities Life. It trades about -0.06 of its total potential returns per unit of risk. FG Annuities Life is currently generating about 0.14 per unit of volatility. If you would invest 2,508 in FG Annuities Life on September 3, 2024 and sell it today you would earn a total of 257.00 from holding FG Annuities Life or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. FG Annuities Life
Performance |
| Timeline |
| Lion One Metals |
| FG Annuities Life |
Lion One and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and FG Annuities
The main advantage of trading using opposite Lion One and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| FG Annuities vs. Sphere Entertainment Co | FG Annuities vs. Zhihu Inc ADR | FG Annuities vs. National CineMedia | FG Annuities vs. Sealed Air |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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