Correlation Between Lion One and FIREWEED METALS
Can any of the company-specific risk be diversified away by investing in both Lion One and FIREWEED 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 FIREWEED 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 FIREWEED METALS P, you can compare the effects of market volatilities on Lion One and FIREWEED 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 FIREWEED METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and FIREWEED METALS.
Diversification Opportunities for Lion One and FIREWEED METALS
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and FIREWEED is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and FIREWEED METALS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIREWEED METALS P 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 FIREWEED METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIREWEED METALS P has no effect on the direction of Lion One i.e., Lion One and FIREWEED METALS go up and down completely randomly.
Pair Corralation between Lion One and FIREWEED METALS
Assuming the 90 days horizon Lion One Metals is expected to under-perform the FIREWEED METALS. In addition to that, Lion One is 1.84 times more volatile than FIREWEED METALS P. It trades about -0.02 of its total potential returns per unit of risk. FIREWEED METALS P is currently generating about 0.05 per unit of volatility. If you would invest 81.00 in FIREWEED METALS P on January 14, 2025 and sell it today you would earn a total of 20.00 from holding FIREWEED METALS P or generate 24.69% 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. FIREWEED METALS P
Performance |
| Timeline |
| Lion One Metals |
| FIREWEED METALS P |
Lion One and FIREWEED METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and FIREWEED METALS
The main advantage of trading using opposite Lion One and FIREWEED METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, FIREWEED 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 FIREWEED METALS will offset losses from the drop in FIREWEED METALS's long position.| Lion One vs. ZIJIN MINH UNSPADR20 | Lion One vs. Newmont | Lion One vs. Barrick Gold | Lion One vs. Franco Nevada |
| FIREWEED METALS vs. SCANSOURCE | FIREWEED METALS vs. JAPAN AIRLINES | FIREWEED METALS vs. Gol Intelligent Airlines | FIREWEED METALS vs. American Airlines Group |
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.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |