Correlation Between NI Holdings and Lion One
Can any of the company-specific risk be diversified away by investing in both NI Holdings 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 NI Holdings and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NI Holdings and Lion One Metals, you can compare the effects of market volatilities on NI Holdings 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 NI Holdings with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and Lion One.
Diversification Opportunities for NI Holdings and Lion One
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between NODK and Lion is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings 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 NI Holdings 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 NI Holdings 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 NI Holdings i.e., NI Holdings and Lion One go up and down completely randomly.
Pair Corralation between NI Holdings and Lion One
Given the investment horizon of 90 days NI Holdings is expected to generate 0.45 times more return on investment than Lion One. However, NI Holdings is 2.21 times less risky than Lion One. It trades about 0.03 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.1 per unit of risk. If you would invest 1,531 in NI Holdings on September 1, 2024 and sell it today you would earn a total of 83.00 from holding NI Holdings or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NI Holdings vs. Lion One Metals
Performance |
| Timeline |
| NI Holdings |
| Lion One Metals |
NI Holdings and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and Lion One
The main advantage of trading using opposite NI Holdings and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings 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.| NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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