Correlation Between Lion One and KENTIMA HOLDING
Can any of the company-specific risk be diversified away by investing in both Lion One and KENTIMA HOLDING 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 KENTIMA HOLDING 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 KENTIMA HOLDING AB, you can compare the effects of market volatilities on Lion One and KENTIMA HOLDING 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 KENTIMA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and KENTIMA HOLDING.
Diversification Opportunities for Lion One and KENTIMA HOLDING
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and KENTIMA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and KENTIMA HOLDING AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENTIMA HOLDING AB 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 KENTIMA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENTIMA HOLDING AB has no effect on the direction of Lion One i.e., Lion One and KENTIMA HOLDING go up and down completely randomly.
Pair Corralation between Lion One and KENTIMA HOLDING
Assuming the 90 days horizon Lion One Metals is expected to under-perform the KENTIMA HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.57 times less risky than KENTIMA HOLDING. The stock trades about -0.05 of its potential returns per unit of risk. The KENTIMA HOLDING AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 23.00 in KENTIMA HOLDING AB on September 12, 2024 and sell it today you would lose (9.00) from holding KENTIMA HOLDING AB or give up 39.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Lion One Metals vs. KENTIMA HOLDING AB
Performance |
| Timeline |
| Lion One Metals |
| KENTIMA HOLDING AB |
Lion One and KENTIMA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and KENTIMA HOLDING
The main advantage of trading using opposite Lion One and KENTIMA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, KENTIMA HOLDING 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 KENTIMA HOLDING will offset losses from the drop in KENTIMA HOLDING'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 |
| KENTIMA HOLDING vs. Burlington Stores | KENTIMA HOLDING vs. GigaMedia | KENTIMA HOLDING vs. Cleanaway Waste Management | KENTIMA HOLDING vs. FUTURE GAMING GRP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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