Correlation Between LION ONE and CRYOLIFE
Can any of the company-specific risk be diversified away by investing in both LION ONE and CRYOLIFE 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 CRYOLIFE 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 CRYOLIFE, you can compare the effects of market volatilities on LION ONE and CRYOLIFE 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 CRYOLIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and CRYOLIFE.
Diversification Opportunities for LION ONE and CRYOLIFE
Good diversification
The 3 months correlation between LION and CRYOLIFE is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and CRYOLIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRYOLIFE 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 CRYOLIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRYOLIFE has no effect on the direction of LION ONE i.e., LION ONE and CRYOLIFE go up and down completely randomly.
Pair Corralation between LION ONE and CRYOLIFE
Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the CRYOLIFE. In addition to that, LION ONE is 2.25 times more volatile than CRYOLIFE. It trades about -0.25 of its total potential returns per unit of risk. CRYOLIFE is currently generating about 0.32 per unit of volatility. If you would invest 2,440 in CRYOLIFE on September 4, 2024 and sell it today you would earn a total of 355.00 from holding CRYOLIFE or generate 14.55% 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. CRYOLIFE
Performance |
| Timeline |
| LION ONE METALS |
| CRYOLIFE |
LION ONE and CRYOLIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and CRYOLIFE
The main advantage of trading using opposite LION ONE and CRYOLIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, CRYOLIFE 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 CRYOLIFE will offset losses from the drop in CRYOLIFE's long position.The idea behind LION ONE METALS and CRYOLIFE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CRYOLIFE vs. Jacquet Metal Service | CRYOLIFE vs. Evolution Mining Limited | CRYOLIFE vs. LION ONE METALS | CRYOLIFE vs. MICRONIC MYDATA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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