Correlation Between Lion One and GLOBAL COSMED
Can any of the company-specific risk be diversified away by investing in both Lion One and GLOBAL COSMED 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 GLOBAL COSMED 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 GLOBAL MED SA, you can compare the effects of market volatilities on Lion One and GLOBAL COSMED 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 GLOBAL COSMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and GLOBAL COSMED.
Diversification Opportunities for Lion One and GLOBAL COSMED
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lion and GLOBAL is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and GLOBAL MED SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL MED SA 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 GLOBAL COSMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL MED SA has no effect on the direction of Lion One i.e., Lion One and GLOBAL COSMED go up and down completely randomly.
Pair Corralation between Lion One and GLOBAL COSMED
Assuming the 90 days horizon Lion One Metals is expected to under-perform the GLOBAL COSMED. In addition to that, Lion One is 1.75 times more volatile than GLOBAL MED SA. It trades about -0.07 of its total potential returns per unit of risk. GLOBAL MED SA is currently generating about 0.08 per unit of volatility. If you would invest 67.00 in GLOBAL MED SA on September 14, 2024 and sell it today you would earn a total of 44.00 from holding GLOBAL MED SA or generate 65.67% 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. GLOBAL MED SA
Performance |
| Timeline |
| Lion One Metals |
| GLOBAL MED SA |
Lion One and GLOBAL COSMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and GLOBAL COSMED
The main advantage of trading using opposite Lion One and GLOBAL COSMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, GLOBAL COSMED 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 GLOBAL COSMED will offset losses from the drop in GLOBAL COSMED'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 |
| GLOBAL COSMED vs. Jacquet Metal Service | GLOBAL COSMED vs. Lion One Metals | GLOBAL COSMED vs. CHINA TONTINE WINES | GLOBAL COSMED vs. SIMS METAL MGT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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