Correlation Between LION ONE and Ladder Capital
Can any of the company-specific risk be diversified away by investing in both LION ONE and Ladder Capital 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 Ladder Capital 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 Ladder Capital Corp, you can compare the effects of market volatilities on LION ONE and Ladder Capital 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 Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and Ladder Capital.
Diversification Opportunities for LION ONE and Ladder Capital
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LION and Ladder is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and Ladder Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladder Capital Corp 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 Ladder Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladder Capital Corp has no effect on the direction of LION ONE i.e., LION ONE and Ladder Capital go up and down completely randomly.
Pair Corralation between LION ONE and Ladder Capital
Assuming the 90 days trading horizon LION ONE METALS is expected to generate 4.56 times more return on investment than Ladder Capital. However, LION ONE is 4.56 times more volatile than Ladder Capital Corp. It trades about 0.03 of its potential returns per unit of risk. Ladder Capital Corp is currently generating about -0.14 per unit of risk. If you would invest 19.00 in LION ONE METALS on September 21, 2024 and sell it today you would earn a total of 0.00 from holding LION ONE METALS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LION ONE METALS vs. Ladder Capital Corp
Performance |
| Timeline |
| LION ONE METALS |
| Ladder Capital Corp |
LION ONE and Ladder Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and Ladder Capital
The main advantage of trading using opposite LION ONE and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, Ladder Capital 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 Ladder Capital will offset losses from the drop in Ladder Capital's long position.| LION ONE vs. American Eagle Outfitters | LION ONE vs. Siamgas And Petrochemicals | LION ONE vs. Scandinavian Tobacco Group | LION ONE vs. Japan Tobacco |
| Ladder Capital vs. PARKEN Sport Entertainment | Ladder Capital vs. GREENX METALS LTD | Ladder Capital vs. LION ONE METALS | Ladder Capital vs. Hollywood Bowl 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |