Correlation Between LION ONE and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both LION ONE and Fast Retailing 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 Fast Retailing 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 Fast Retailing Co, you can compare the effects of market volatilities on LION ONE and Fast Retailing 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 Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and Fast Retailing.
Diversification Opportunities for LION ONE and Fast Retailing
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LION and Fast is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing 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 Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of LION ONE i.e., LION ONE and Fast Retailing go up and down completely randomly.
Pair Corralation between LION ONE and Fast Retailing
Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the Fast Retailing. In addition to that, LION ONE is 4.37 times more volatile than Fast Retailing Co. It trades about -0.19 of its total potential returns per unit of risk. Fast Retailing Co is currently generating about -0.19 per unit of volatility. If you would invest 30,975 in Fast Retailing Co on December 1, 2024 and sell it today you would lose (2,025) from holding Fast Retailing Co or give up 6.54% 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. Fast Retailing Co
Performance |
| Timeline |
| LION ONE METALS |
| Fast Retailing |
LION ONE and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and Fast Retailing
The main advantage of trading using opposite LION ONE and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.| LION ONE vs. ANTA Sports Products | LION ONE vs. Addtech AB | LION ONE vs. PLAYTECH | LION ONE vs. Uber Technologies |
| Fast Retailing vs. EITZEN CHEMICALS | Fast Retailing vs. T Mobile | Fast Retailing vs. SOLSTAD OFFSHORE NK | Fast Retailing vs. SIEM OFFSHORE NEW |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets |