Correlation Between Lion One and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Lion One and Sellas Life 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 Sellas Life 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 Sellas Life Sciences, you can compare the effects of market volatilities on Lion One and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Sellas Life.
Diversification Opportunities for Lion One and Sellas Life
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Sellas is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Lion One i.e., Lion One and Sellas Life go up and down completely randomly.
Pair Corralation between Lion One and Sellas Life
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Sellas Life. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.05 times less risky than Sellas Life. The otc stock trades about -0.3 of its potential returns per unit of risk. The Sellas Life Sciences is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 123.00 in Sellas Life Sciences on August 30, 2024 and sell it today you would lose (3.00) from holding Sellas Life Sciences or give up 2.44% 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. Sellas Life Sciences
Performance |
| Timeline |
| Lion One Metals |
| Sellas Life Sciences |
Lion One and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Sellas Life
The main advantage of trading using opposite Lion One and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Lion One vs. Silver Hammer Mining | Lion One vs. Reyna Silver Corp | Lion One vs. Guanajuato Silver | Lion One vs. Silver One Resources |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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