Correlation Between Lion One and REGAL ASIAN
Can any of the company-specific risk be diversified away by investing in both Lion One and REGAL ASIAN 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 REGAL ASIAN 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 REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on Lion One and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and REGAL ASIAN.
Diversification Opportunities for Lion One and REGAL ASIAN
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lion and REGAL is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of Lion One i.e., Lion One and REGAL ASIAN go up and down completely randomly.
Pair Corralation between Lion One and REGAL ASIAN
Assuming the 90 days horizon Lion One Metals is expected to under-perform the REGAL ASIAN. In addition to that, Lion One is 2.34 times more volatile than REGAL ASIAN INVESTMENTS. It trades about -0.19 of its total potential returns per unit of risk. REGAL ASIAN INVESTMENTS is currently generating about 0.08 per unit of volatility. If you would invest 129.00 in REGAL ASIAN INVESTMENTS on August 28, 2024 and sell it today you would earn a total of 3.00 from holding REGAL ASIAN INVESTMENTS or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
| Lion One Metals |
| REGAL ASIAN INVESTMENTS |
Lion One and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and REGAL ASIAN
The main advantage of trading using opposite Lion One and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings |
| REGAL ASIAN vs. Choice Hotels International | REGAL ASIAN vs. Meli Hotels International | REGAL ASIAN vs. InterContinental Hotels Group | REGAL ASIAN vs. METHODE ELECTRONICS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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