Correlation Between Pekin Life and Lion One
Can any of the company-specific risk be diversified away by investing in both Pekin Life 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 Pekin Life and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Lion One Metals, you can compare the effects of market volatilities on Pekin Life 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 Pekin Life with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Lion One.
Diversification Opportunities for Pekin Life and Lion One
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pekin and Lion is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance 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 Pekin Life 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 Pekin Life Insurance 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 Pekin Life i.e., Pekin Life and Lion One go up and down completely randomly.
Pair Corralation between Pekin Life and Lion One
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.15 times more return on investment than Lion One. However, Pekin Life Insurance is 6.84 times less risky than Lion One. It trades about 0.23 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.26 per unit of risk. If you would invest 1,150 in Pekin Life Insurance on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pekin Life Insurance vs. Lion One Metals
Performance |
| Timeline |
| Pekin Life Insurance |
| Lion One Metals |
Pekin Life and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Lion One
The main advantage of trading using opposite Pekin Life and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life 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.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
| Lion One vs. Ascendant Resources | Lion One vs. Cantex Mine Development | Lion One vs. Amarc Resources | Lion One vs. Sterling Metals 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |