Correlation Between Lion One and SOUTHWESTERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lion One Metals and SOUTHWESTERN ELEC PWR, you can compare the effects of market volatilities on Lion One and SOUTHWESTERN 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 SOUTHWESTERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and SOUTHWESTERN.
Diversification Opportunities for Lion One and SOUTHWESTERN
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lion and SOUTHWESTERN is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and SOUTHWESTERN ELEC PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHWESTERN ELEC PWR 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 SOUTHWESTERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHWESTERN ELEC PWR has no effect on the direction of Lion One i.e., Lion One and SOUTHWESTERN go up and down completely randomly.
Pair Corralation between Lion One and SOUTHWESTERN
Assuming the 90 days horizon Lion One Metals is expected to under-perform the SOUTHWESTERN. In addition to that, Lion One is 6.04 times more volatile than SOUTHWESTERN ELEC PWR. It trades about -0.08 of its total potential returns per unit of risk. SOUTHWESTERN ELEC PWR is currently generating about 0.01 per unit of volatility. If you would invest 9,246 in SOUTHWESTERN ELEC PWR on September 15, 2024 and sell it today you would earn a total of 99.00 from holding SOUTHWESTERN ELEC PWR or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.94% |
| Values | Daily Returns |
Lion One Metals vs. SOUTHWESTERN ELEC PWR
Performance |
| Timeline |
| Lion One Metals |
| SOUTHWESTERN ELEC PWR |
Lion One and SOUTHWESTERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and SOUTHWESTERN
The main advantage of trading using opposite Lion One and SOUTHWESTERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, SOUTHWESTERN 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 SOUTHWESTERN will offset losses from the drop in SOUTHWESTERN's long position.| Lion One vs. Advantage Solutions | Lion One vs. Atlas Corp | Lion One vs. PureCycle Technologies | Lion One vs. WM Technology |
| SOUTHWESTERN vs. Insteel Industries | SOUTHWESTERN vs. Stepstone Group | SOUTHWESTERN vs. Nasdaq Inc | SOUTHWESTERN vs. Lion One 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |