Correlation Between Lion One and MSCI
Can any of the company-specific risk be diversified away by investing in both Lion One and MSCI 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 MSCI 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 MSCI Inc, you can compare the effects of market volatilities on Lion One and MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and MSCI.
Diversification Opportunities for Lion One and MSCI
Very good diversification
The 3 months correlation between Lion and MSCI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Lion One i.e., Lion One and MSCI go up and down completely randomly.
Pair Corralation between Lion One and MSCI
Assuming the 90 days horizon Lion One Metals is expected to under-perform the MSCI. In addition to that, Lion One is 3.36 times more volatile than MSCI Inc. It trades about -0.12 of its total potential returns per unit of risk. MSCI Inc is currently generating about 0.24 per unit of volatility. If you would invest 56,543 in MSCI Inc on September 13, 2024 and sell it today you would earn a total of 3,557 from holding MSCI Inc or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lion One Metals vs. MSCI Inc
Performance |
| Timeline |
| Lion One Metals |
| MSCI Inc |
Lion One and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and MSCI
The main advantage of trading using opposite Lion One and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, MSCI 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 MSCI will offset losses from the drop in MSCI's long position.| Lion One vs. Franco Nevada | Lion One vs. Superior Plus Corp | Lion One vs. SIVERS SEMICONDUCTORS AB | Lion One vs. Norsk Hydro ASA |
| MSCI vs. JD SPORTS FASH | MSCI vs. MIRAMAR HOTEL INV | MSCI vs. Sunstone Hotel Investors | MSCI vs. PLAYTIKA HOLDING DL 01 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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