Correlation Between Lion One and I 80
Can any of the company-specific risk be diversified away by investing in both Lion One and I 80 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 I 80 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 I 80 Gold Corp, you can compare the effects of market volatilities on Lion One and I 80 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 I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and I 80.
Diversification Opportunities for Lion One and I 80
Very poor diversification
The 3 months correlation between Lion and IAUX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 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 I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Lion One i.e., Lion One and I 80 go up and down completely randomly.
Pair Corralation between Lion One and I 80
Assuming the 90 days horizon Lion One Metals is expected to generate 0.79 times more return on investment than I 80. However, Lion One Metals is 1.26 times less risky than I 80. It trades about -0.12 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.24 per unit of risk. If you would invest 20.00 in Lion One Metals on September 24, 2024 and sell it today you would lose (2.00) from holding Lion One Metals or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. I 80 Gold Corp
Performance |
| Timeline |
| Lion One Metals |
| I 80 Gold |
Lion One and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and I 80
The main advantage of trading using opposite Lion One and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.| Lion One vs. Puma Exploration | Lion One vs. Sixty North Gold | Lion One vs. Red Pine Exploration | Lion One vs. Altamira Gold Corp |
| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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