Correlation Between Lion One and CDL INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Lion One and CDL INVESTMENT 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 CDL INVESTMENT 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 CDL INVESTMENT, you can compare the effects of market volatilities on Lion One and CDL INVESTMENT 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 CDL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and CDL INVESTMENT.
Diversification Opportunities for Lion One and CDL INVESTMENT
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and CDL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and CDL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDL INVESTMENT 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 CDL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDL INVESTMENT has no effect on the direction of Lion One i.e., Lion One and CDL INVESTMENT go up and down completely randomly.
Pair Corralation between Lion One and CDL INVESTMENT
Assuming the 90 days horizon Lion One Metals is expected to under-perform the CDL INVESTMENT. In addition to that, Lion One is 2.05 times more volatile than CDL INVESTMENT. It trades about -0.1 of its total potential returns per unit of risk. CDL INVESTMENT is currently generating about 0.18 per unit of volatility. If you would invest 40.00 in CDL INVESTMENT on September 2, 2024 and sell it today you would earn a total of 3.00 from holding CDL INVESTMENT or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. CDL INVESTMENT
Performance |
| Timeline |
| Lion One Metals |
| CDL INVESTMENT |
Lion One and CDL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and CDL INVESTMENT
The main advantage of trading using opposite Lion One and CDL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, CDL INVESTMENT 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 CDL INVESTMENT will offset losses from the drop in CDL INVESTMENT's long position.| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings | Lion One vs. Origin Agritech |
| CDL INVESTMENT vs. GREENX METALS LTD | CDL INVESTMENT vs. PLAYWAY SA ZY 10 | CDL INVESTMENT vs. ARDAGH METAL PACDL 0001 | CDL INVESTMENT vs. PLAY2CHILL SA ZY |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |