Correlation Between Lion One and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Lion One and Gecina SA 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 Gecina SA 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 Gecina SA, you can compare the effects of market volatilities on Lion One and Gecina SA 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 Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Gecina SA.
Diversification Opportunities for Lion One and Gecina SA
Poor diversification
The 3 months correlation between Lion and Gecina is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina 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 Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Lion One i.e., Lion One and Gecina SA go up and down completely randomly.
Pair Corralation between Lion One and Gecina SA
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Gecina SA. In addition to that, Lion One is 3.24 times more volatile than Gecina SA. It trades about -0.03 of its total potential returns per unit of risk. Gecina SA is currently generating about 0.02 per unit of volatility. If you would invest 8,445 in Gecina SA on September 13, 2024 and sell it today you would earn a total of 680.00 from holding Gecina SA or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Gecina SA
Performance |
| Timeline |
| Lion One Metals |
| Gecina SA |
Lion One and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Gecina SA
The main advantage of trading using opposite Lion One and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA'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 |
| Gecina SA vs. SYSTEMAIR AB | Gecina SA vs. Microbot Medical | Gecina SA vs. Wizz Air Holdings | Gecina SA vs. HF SINCLAIR P |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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