Correlation Between Lion One and International Tower
Can any of the company-specific risk be diversified away by investing in both Lion One and International Tower 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 International Tower 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 International Tower Hill, you can compare the effects of market volatilities on Lion One and International Tower 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 International Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and International Tower.
Diversification Opportunities for Lion One and International Tower
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lion and International is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and International Tower Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Tower Hill 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 International Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Tower Hill has no effect on the direction of Lion One i.e., Lion One and International Tower go up and down completely randomly.
Pair Corralation between Lion One and International Tower
Assuming the 90 days horizon Lion One Metals is expected to under-perform the International Tower. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.24 times less risky than International Tower. The otc stock trades about -0.05 of its potential returns per unit of risk. The International Tower Hill is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 55.00 in International Tower Hill on September 3, 2024 and sell it today you would lose (9.00) from holding International Tower Hill or give up 16.36% 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. International Tower Hill
Performance |
| Timeline |
| Lion One Metals |
| International Tower Hill |
Lion One and International Tower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and International Tower
The main advantage of trading using opposite Lion One and International Tower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, International Tower 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 International Tower will offset losses from the drop in International Tower'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 |
| International Tower vs. Vista Gold | International Tower vs. Golden Minerals | International Tower vs. Paramount Gold Nevada | International Tower vs. Tanzanian Royalty Exploration |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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