Correlation Between Lykos Metals and K2 Asset
Can any of the company-specific risk be diversified away by investing in both Lykos Metals and K2 Asset 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 Lykos Metals and K2 Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lykos Metals and K2 Asset Management, you can compare the effects of market volatilities on Lykos Metals and K2 Asset 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 Lykos Metals with a short position of K2 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lykos Metals and K2 Asset.
Diversification Opportunities for Lykos Metals and K2 Asset
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lykos and KAM is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lykos Metals and K2 Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K2 Asset Management and Lykos Metals 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 Lykos Metals are associated (or correlated) with K2 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K2 Asset Management has no effect on the direction of Lykos Metals i.e., Lykos Metals and K2 Asset go up and down completely randomly.
Pair Corralation between Lykos Metals and K2 Asset
If you would invest 7.10 in K2 Asset Management on November 9, 2024 and sell it today you would earn a total of 0.40 from holding K2 Asset Management or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lykos Metals vs. K2 Asset Management
Performance |
| Timeline |
| Lykos Metals |
| K2 Asset Management |
Lykos Metals and K2 Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lykos Metals and K2 Asset
The main advantage of trading using opposite Lykos Metals and K2 Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lykos Metals position performs unexpectedly, K2 Asset 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 K2 Asset will offset losses from the drop in K2 Asset's long position.| Lykos Metals vs. Evolution Mining | Lykos Metals vs. Bluescope Steel | Lykos Metals vs. Perseus Mining | Lykos Metals vs. Champion Iron |
| K2 Asset vs. Beam Communications Holdings | K2 Asset vs. Sports Entertainment Group | K2 Asset vs. Red Hill Iron | K2 Asset vs. Spirit Telecom |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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