Correlation Between Lion One and KAUFMAN ET
Can any of the company-specific risk be diversified away by investing in both Lion One and KAUFMAN ET 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 KAUFMAN ET 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 KAUFMAN ET BROAD, you can compare the effects of market volatilities on Lion One and KAUFMAN ET 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 KAUFMAN ET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and KAUFMAN ET.
Diversification Opportunities for Lion One and KAUFMAN ET
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and KAUFMAN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and KAUFMAN ET BROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAUFMAN ET BROAD 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 KAUFMAN ET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAUFMAN ET BROAD has no effect on the direction of Lion One i.e., Lion One and KAUFMAN ET go up and down completely randomly.
Pair Corralation between Lion One and KAUFMAN ET
Assuming the 90 days horizon Lion One Metals is expected to under-perform the KAUFMAN ET. In addition to that, Lion One is 2.32 times more volatile than KAUFMAN ET BROAD. It trades about -0.03 of its total potential returns per unit of risk. KAUFMAN ET BROAD is currently generating about 0.04 per unit of volatility. If you would invest 2,352 in KAUFMAN ET BROAD on August 31, 2024 and sell it today you would earn a total of 793.00 from holding KAUFMAN ET BROAD or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. KAUFMAN ET BROAD
Performance |
| Timeline |
| Lion One Metals |
| KAUFMAN ET BROAD |
Lion One and KAUFMAN ET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and KAUFMAN ET
The main advantage of trading using opposite Lion One and KAUFMAN ET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, KAUFMAN ET 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 KAUFMAN ET will offset losses from the drop in KAUFMAN ET's long position.| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. Origin Agritech |
| KAUFMAN ET vs. Direct Line Insurance | KAUFMAN ET vs. Zijin Mining Group | KAUFMAN ET vs. Lion One Metals | KAUFMAN ET vs. Japan Post Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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