Correlation Between Lion One and Shengkai Innovations
Can any of the company-specific risk be diversified away by investing in both Lion One and Shengkai Innovations 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 Shengkai Innovations 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 Shengkai Innovations, you can compare the effects of market volatilities on Lion One and Shengkai Innovations 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 Shengkai Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Shengkai Innovations.
Diversification Opportunities for Lion One and Shengkai Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lion and Shengkai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Shengkai Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengkai Innovations 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 Shengkai Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengkai Innovations has no effect on the direction of Lion One i.e., Lion One and Shengkai Innovations go up and down completely randomly.
Pair Corralation between Lion One and Shengkai Innovations
If you would invest 0.01 in Shengkai Innovations on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Shengkai Innovations or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Lion One Metals vs. Shengkai Innovations
Performance |
| Timeline |
| Lion One Metals |
| Shengkai Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lion One and Shengkai Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Shengkai Innovations
The main advantage of trading using opposite Lion One and Shengkai Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Shengkai Innovations 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 Shengkai Innovations will offset losses from the drop in Shengkai Innovations' long position.| Lion One vs. Advantage Solutions | Lion One vs. Atlas Corp | Lion One vs. PureCycle Technologies | Lion One vs. WM Technology |
| Shengkai Innovations vs. Univest Pennsylvania | Shengkai Innovations vs. Live Ventures | Shengkai Innovations vs. Discover Financial Services | Shengkai Innovations vs. BCB Bancorp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |