Correlation Between Lion One and Anacortes Mining
Can any of the company-specific risk be diversified away by investing in both Lion One and Anacortes Mining 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 Anacortes Mining 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 Anacortes Mining Corp, you can compare the effects of market volatilities on Lion One and Anacortes Mining 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 Anacortes Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Anacortes Mining.
Diversification Opportunities for Lion One and Anacortes Mining
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lion and Anacortes is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Anacortes Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anacortes Mining Corp 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 Anacortes Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anacortes Mining Corp has no effect on the direction of Lion One i.e., Lion One and Anacortes Mining go up and down completely randomly.
Pair Corralation between Lion One and Anacortes Mining
If you would invest 20.00 in Lion One Metals on October 26, 2024 and sell it today you would earn a total of 1.00 from holding Lion One Metals or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.56% |
| Values | Daily Returns |
Lion One Metals vs. Anacortes Mining Corp
Performance |
| Timeline |
| Lion One Metals |
| Anacortes Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lion One and Anacortes Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Anacortes Mining
The main advantage of trading using opposite Lion One and Anacortes Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Anacortes Mining 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 Anacortes Mining will offset losses from the drop in Anacortes Mining'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 |
| Anacortes Mining vs. Liberty Gold Corp | Anacortes Mining vs. Lion One Metals | Anacortes Mining vs. Marvel Gold Limited | Anacortes Mining vs. GGX 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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