Correlation Between Lion One and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both Lion One and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on Lion One and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and GAMESTOP.
Diversification Opportunities for Lion One and GAMESTOP
Very good diversification
The 3 months correlation between Lion and GAMESTOP is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of Lion One i.e., Lion One and GAMESTOP go up and down completely randomly.
Pair Corralation between Lion One and GAMESTOP
Assuming the 90 days horizon Lion One Metals is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 1.56 times less risky than GAMESTOP. The stock trades about -0.06 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,912 in GAMESTOP on September 3, 2024 and sell it today you would lose (312.00) from holding GAMESTOP or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. GAMESTOP
Performance |
| Timeline |
| Lion One Metals |
| GAMESTOP |
Lion One and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and GAMESTOP
The main advantage of trading using opposite Lion One and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| Lion One vs. Cars Inc | Lion One vs. Chunghwa Telecom Co | Lion One vs. United Internet AG | Lion One vs. JAPAN TOBACCO UNSPADR12 |
| GAMESTOP vs. QBE Insurance Group | GAMESTOP vs. Canon Marketing Japan | GAMESTOP vs. CDN IMPERIAL BANK | GAMESTOP vs. The Hanover Insurance |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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