Correlation Between Lion One and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Lion One and Futu Holdings 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 Futu Holdings 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 Futu Holdings Limited, you can compare the effects of market volatilities on Lion One and Futu Holdings 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 Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Futu Holdings.
Diversification Opportunities for Lion One and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lion and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings Limited 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 Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Lion One i.e., Lion One and Futu Holdings go up and down completely randomly.
Pair Corralation between Lion One and Futu Holdings
If you would invest (100.00) in Futu Holdings Limited on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Futu Holdings Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lion One Metals vs. Futu Holdings Limited
Performance |
| Timeline |
| Lion One Metals |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lion One and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Futu Holdings
The main advantage of trading using opposite Lion One and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Lion One vs. Advantage Solutions | Lion One vs. Atlas Corp | Lion One vs. PureCycle Technologies | Lion One vs. WM Technology |
| Futu Holdings vs. Summa Silver Corp | Futu Holdings vs. Digi International | Futu Holdings vs. Perseus Mining Limited | Futu Holdings vs. Summit Materials |
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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