Correlation Between Lion One and FMEGR
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By analyzing existing cross correlation between Lion One Metals and FMEGR 1875 01 DEC 26, you can compare the effects of market volatilities on Lion One and FMEGR 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 FMEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and FMEGR.
Diversification Opportunities for Lion One and FMEGR
Very weak diversification
The 3 months correlation between Lion and FMEGR is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and FMEGR 1875 01 DEC 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMEGR 1875 01 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 FMEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMEGR 1875 01 has no effect on the direction of Lion One i.e., Lion One and FMEGR go up and down completely randomly.
Pair Corralation between Lion One and FMEGR
Assuming the 90 days horizon Lion One Metals is expected to under-perform the FMEGR. In addition to that, Lion One is 3.17 times more volatile than FMEGR 1875 01 DEC 26. It trades about -0.06 of its total potential returns per unit of risk. FMEGR 1875 01 DEC 26 is currently generating about 0.02 per unit of volatility. If you would invest 9,049 in FMEGR 1875 01 DEC 26 on September 3, 2024 and sell it today you would earn a total of 69.00 from holding FMEGR 1875 01 DEC 26 or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 43.15% |
| Values | Daily Returns |
Lion One Metals vs. FMEGR 1875 01 DEC 26
Performance |
| Timeline |
| Lion One Metals |
| FMEGR 1875 01 |
Lion One and FMEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and FMEGR
The main advantage of trading using opposite Lion One and FMEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, FMEGR 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 FMEGR will offset losses from the drop in FMEGR'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 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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