Correlation Between Lion One and Grand City
Can any of the company-specific risk be diversified away by investing in both Lion One and Grand City 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 Grand City 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 Grand City Properties, you can compare the effects of market volatilities on Lion One and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Grand City.
Diversification Opportunities for Lion One and Grand City
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lion and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Lion One i.e., Lion One and Grand City go up and down completely randomly.
Pair Corralation between Lion One and Grand City
If you would invest 18.00 in Lion One Metals on October 13, 2024 and sell it today you would earn a total of 3.00 from holding Lion One Metals or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Lion One Metals vs. Grand City Properties
Performance |
| Timeline |
| Lion One Metals |
| Grand City Properties |
Lion One and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Grand City
The main advantage of trading using opposite Lion One and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City'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 |
| Grand City vs. Allient | Grand City vs. Borr Drilling | Grand City vs. Vantage Drilling International | Grand City vs. Awilco Drilling PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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