Correlation Between Marathon Gold and Lion One
Can any of the company-specific risk be diversified away by investing in both Marathon Gold and Lion One 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 Marathon Gold and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Gold and Lion One Metals, you can compare the effects of market volatilities on Marathon Gold and Lion One 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 Marathon Gold with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and Lion One.
Diversification Opportunities for Marathon Gold and Lion One
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marathon and Lion is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Gold and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals and Marathon Gold 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 Marathon Gold are associated (or correlated) with Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Marathon Gold i.e., Marathon Gold and Lion One go up and down completely randomly.
Pair Corralation between Marathon Gold and Lion One
If you would invest 20.00 in Lion One Metals on October 26, 2024 and sell it today you would earn a total of 1.00 from holding Lion One Metals or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.56% |
| Values | Daily Returns |
Marathon Gold vs. Lion One Metals
Performance |
| Timeline |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lion One Metals |
Marathon Gold and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Gold and Lion One
The main advantage of trading using opposite Marathon Gold and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Gold position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold Corp |
| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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