Correlation Between Lion One and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Lion One and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on Lion One and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and GREENX METALS.
Diversification Opportunities for Lion One and GREENX METALS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and GREENX is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Lion One i.e., Lion One and GREENX METALS go up and down completely randomly.
Pair Corralation between Lion One and GREENX METALS
Assuming the 90 days horizon Lion One Metals is expected to under-perform the GREENX METALS. In addition to that, Lion One is 1.08 times more volatile than GREENX METALS LTD. It trades about -0.06 of its total potential returns per unit of risk. GREENX METALS LTD is currently generating about 0.0 per unit of volatility. If you would invest 54.00 in GREENX METALS LTD on August 24, 2024 and sell it today you would lose (14.00) from holding GREENX METALS LTD or give up 25.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. GREENX METALS LTD
Performance |
| Timeline |
| Lion One Metals |
| GREENX METALS LTD |
Lion One and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and GREENX METALS
The main advantage of trading using opposite Lion One and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS'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 |
| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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