Correlation Between Lion One and Leviathan Gold
Can any of the company-specific risk be diversified away by investing in both Lion One and Leviathan Gold 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 Leviathan Gold 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 Leviathan Gold, you can compare the effects of market volatilities on Lion One and Leviathan Gold 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 Leviathan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Leviathan Gold.
Diversification Opportunities for Lion One and Leviathan Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Leviathan is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Leviathan Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leviathan 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 Leviathan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leviathan Gold has no effect on the direction of Lion One i.e., Lion One and Leviathan Gold go up and down completely randomly.
Pair Corralation between Lion One and Leviathan Gold
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Leviathan Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 2.03 times less risky than Leviathan Gold. The otc stock trades about -0.08 of its potential returns per unit of risk. The Leviathan Gold is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7.95 in Leviathan Gold on August 25, 2024 and sell it today you would lose (2.72) from holding Leviathan Gold or give up 34.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Leviathan Gold
Performance |
| Timeline |
| Lion One Metals |
| Leviathan Gold |
Lion One and Leviathan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Leviathan Gold
The main advantage of trading using opposite Lion One and Leviathan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Leviathan Gold 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 Leviathan Gold will offset losses from the drop in Leviathan Gold'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 |
| Leviathan Gold vs. Aurion Resources | Leviathan Gold vs. Liberty Gold Corp | Leviathan Gold vs. Rio2 Limited | Leviathan Gold 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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