Correlation Between Lion One and Loop Media
Can any of the company-specific risk be diversified away by investing in both Lion One and Loop Media 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 Loop Media 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 Loop Media, you can compare the effects of market volatilities on Lion One and Loop Media 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 Loop Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Loop Media.
Diversification Opportunities for Lion One and Loop Media
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and Loop is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Loop Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Media 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 Loop Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Media has no effect on the direction of Lion One i.e., Lion One and Loop Media go up and down completely randomly.
Pair Corralation between Lion One and Loop Media
Assuming the 90 days horizon Lion One Metals is expected to generate 0.41 times more return on investment than Loop Media. However, Lion One Metals is 2.42 times less risky than Loop Media. It trades about -0.03 of its potential returns per unit of risk. Loop Media is currently generating about -0.07 per unit of risk. If you would invest 56.00 in Lion One Metals on August 27, 2024 and sell it today you would lose (35.00) from holding Lion One Metals or give up 62.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.48% |
| Values | Daily Returns |
Lion One Metals vs. Loop Media
Performance |
| Timeline |
| Lion One Metals |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lion One and Loop Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Loop Media
The main advantage of trading using opposite Lion One and Loop Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Loop Media 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 Loop Media will offset losses from the drop in Loop Media'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 |
| Loop Media vs. Acco Brands | Loop Media vs. Lion One Metals | Loop Media vs. Afya | Loop Media vs. Aerofoam Metals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |