Correlation Between LION ONE and BB Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between LION ONE METALS and BB Biotech AG, you can compare the effects of market volatilities on LION ONE and BB Biotech 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 BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and BB Biotech.
Diversification Opportunities for LION ONE and BB Biotech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LION and BBZA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG 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 BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of LION ONE i.e., LION ONE and BB Biotech go up and down completely randomly.
Pair Corralation between LION ONE and BB Biotech
Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the BB Biotech. In addition to that, LION ONE is 3.13 times more volatile than BB Biotech AG. It trades about -0.04 of its total potential returns per unit of risk. BB Biotech AG is currently generating about -0.03 per unit of volatility. If you would invest 4,375 in BB Biotech AG on September 3, 2024 and sell it today you would lose (375.00) from holding BB Biotech AG or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LION ONE METALS vs. BB Biotech AG
Performance |
| Timeline |
| LION ONE METALS |
| BB Biotech AG |
LION ONE and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and BB Biotech
The main advantage of trading using opposite LION ONE and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.| LION ONE vs. HomeToGo SE | LION ONE vs. NORTHEAST UTILITIES | LION ONE vs. SBM OFFSHORE | LION ONE vs. Zijin Mining Group |
| BB Biotech vs. Tyson Foods | BB Biotech vs. AUSTEVOLL SEAFOOD | BB Biotech vs. HF FOODS GRP | BB Biotech vs. Cal Maine Foods |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |