Correlation Between Mitsui OSK and Lion One
Can any of the company-specific risk be diversified away by investing in both Mitsui OSK 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 Mitsui OSK and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsui OSK Lines and Lion One Metals, you can compare the effects of market volatilities on Mitsui OSK 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 Mitsui OSK with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui OSK and Lion One.
Diversification Opportunities for Mitsui OSK and Lion One
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitsui and Lion is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui OSK Lines 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 Mitsui OSK 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 Mitsui OSK Lines 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 Mitsui OSK i.e., Mitsui OSK and Lion One go up and down completely randomly.
Pair Corralation between Mitsui OSK and Lion One
Assuming the 90 days trading horizon Mitsui OSK Lines is expected to generate 0.57 times more return on investment than Lion One. However, Mitsui OSK Lines is 1.76 times less risky than Lion One. It trades about 0.04 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.03 per unit of risk. If you would invest 2,277 in Mitsui OSK Lines on September 3, 2024 and sell it today you would earn a total of 892.00 from holding Mitsui OSK Lines or generate 39.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsui OSK Lines vs. Lion One Metals
Performance |
| Timeline |
| Mitsui OSK Lines |
| Lion One Metals |
Mitsui OSK and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsui OSK and Lion One
The main advantage of trading using opposite Mitsui OSK and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsui OSK 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.| Mitsui OSK vs. NTG Nordic Transport | Mitsui OSK vs. Lion One Metals | Mitsui OSK vs. Texas Roadhouse | Mitsui OSK vs. SERI INDUSTRIAL EO |
| Lion One vs. Cars Inc | Lion One vs. Chunghwa Telecom Co | Lion One vs. United Internet AG | Lion One vs. JAPAN TOBACCO UNSPADR12 |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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