Correlation Between Lion One and CleanCore Solutions
Can any of the company-specific risk be diversified away by investing in both Lion One and CleanCore Solutions 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 CleanCore Solutions 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 CleanCore Solutions, you can compare the effects of market volatilities on Lion One and CleanCore Solutions 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 CleanCore Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and CleanCore Solutions.
Diversification Opportunities for Lion One and CleanCore Solutions
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and CleanCore is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and CleanCore Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanCore Solutions 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 CleanCore Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanCore Solutions has no effect on the direction of Lion One i.e., Lion One and CleanCore Solutions go up and down completely randomly.
Pair Corralation between Lion One and CleanCore Solutions
Assuming the 90 days horizon Lion One Metals is expected to generate 0.63 times more return on investment than CleanCore Solutions. However, Lion One Metals is 1.58 times less risky than CleanCore Solutions. It trades about -0.04 of its potential returns per unit of risk. CleanCore Solutions is currently generating about -0.06 per unit of risk. If you would invest 59.00 in Lion One Metals on September 5, 2024 and sell it today you would lose (40.00) from holding Lion One Metals or give up 67.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.11% |
| Values | Daily Returns |
Lion One Metals vs. CleanCore Solutions
Performance |
| Timeline |
| Lion One Metals |
| CleanCore Solutions |
Lion One and CleanCore Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and CleanCore Solutions
The main advantage of trading using opposite Lion One and CleanCore Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, CleanCore Solutions 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 CleanCore Solutions will offset losses from the drop in CleanCore Solutions' long position.| Lion One vs. Advantage Solutions | Lion One vs. Atlas Corp | Lion One vs. PureCycle Technologies | Lion One vs. WM Technology |
| CleanCore Solutions vs. Paiute Oil Mining | CleanCore Solutions vs. Enersys | CleanCore Solutions vs. Aldel Financial II | CleanCore Solutions vs. Supercom |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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