Correlation Between Lion One and Gold Bull
Can any of the company-specific risk be diversified away by investing in both Lion One and Gold Bull 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 Gold Bull 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 Gold Bull Resources, you can compare the effects of market volatilities on Lion One and Gold Bull 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 Gold Bull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Gold Bull.
Diversification Opportunities for Lion One and Gold Bull
Weak diversification
The 3 months correlation between Lion and Gold is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Gold Bull Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bull Resources 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 Gold Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bull Resources has no effect on the direction of Lion One i.e., Lion One and Gold Bull go up and down completely randomly.
Pair Corralation between Lion One and Gold Bull
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Gold Bull. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 2.24 times less risky than Gold Bull. The otc stock trades about -0.26 of its potential returns per unit of risk. The Gold Bull Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Gold Bull Resources on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Gold Bull Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Gold Bull Resources
Performance |
| Timeline |
| Lion One Metals |
| Gold Bull Resources |
Lion One and Gold Bull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Gold Bull
The main advantage of trading using opposite Lion One and Gold Bull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Gold Bull 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 Gold Bull will offset losses from the drop in Gold Bull's long position.| Lion One vs. Ascendant Resources | Lion One vs. Cantex Mine Development | Lion One vs. Amarc Resources | Lion One vs. Sterling Metals Corp |
| Gold Bull vs. Aurion Resources | Gold Bull vs. Liberty Gold Corp | Gold Bull vs. Rio2 Limited | Gold Bull vs. Orezone Gold Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |