Correlation Between LION ONE and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both LION ONE and Comstock Holding 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 Comstock Holding 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 Comstock Holding Companies, you can compare the effects of market volatilities on LION ONE and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and Comstock Holding.
Diversification Opportunities for LION ONE and Comstock Holding
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LION and Comstock is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of LION ONE i.e., LION ONE and Comstock Holding go up and down completely randomly.
Pair Corralation between LION ONE and Comstock Holding
Assuming the 90 days trading horizon LION ONE METALS is expected to generate 4.02 times more return on investment than Comstock Holding. However, LION ONE is 4.02 times more volatile than Comstock Holding Companies. It trades about 0.19 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about 0.03 per unit of risk. If you would invest 16.00 in LION ONE METALS on October 15, 2024 and sell it today you would earn a total of 4.00 from holding LION ONE METALS or generate 25.0% 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. Comstock Holding Companies
Performance |
| Timeline |
| LION ONE METALS |
| Comstock Holding Com |
LION ONE and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and Comstock Holding
The main advantage of trading using opposite LION ONE and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| LION ONE vs. Forsys Metals Corp | LION ONE vs. FIREWEED METALS P | LION ONE vs. Webster Financial | LION ONE vs. CDN IMPERIAL BANK |
| Comstock Holding vs. OBSERVE MEDICAL ASA | Comstock Holding vs. GRUPO CARSO A1 | Comstock Holding vs. CVR Medical Corp | Comstock Holding vs. GLOBUS MEDICAL A |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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