Correlation Between Pingtan Marine and Lion One
Can any of the company-specific risk be diversified away by investing in both Pingtan Marine 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 Pingtan Marine and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pingtan Marine Enterprise and Lion One Metals, you can compare the effects of market volatilities on Pingtan Marine 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 Pingtan Marine with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pingtan Marine and Lion One.
Diversification Opportunities for Pingtan Marine and Lion One
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pingtan and Lion is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pingtan Marine Enterprise 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 Pingtan Marine 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 Pingtan Marine Enterprise 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 Pingtan Marine i.e., Pingtan Marine and Lion One go up and down completely randomly.
Pair Corralation between Pingtan Marine and Lion One
Considering the 90-day investment horizon Pingtan Marine Enterprise is expected to under-perform the Lion One. In addition to that, Pingtan Marine is 2.78 times more volatile than Lion One Metals. It trades about -0.08 of its total potential returns per unit of risk. Lion One Metals is currently generating about -0.04 per unit of volatility. If you would invest 59.00 in Lion One Metals on September 5, 2024 and sell it today you would lose (40.00) from holding Lion One Metals or give up 67.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 11.92% |
| Values | Daily Returns |
Pingtan Marine Enterprise vs. Lion One Metals
Performance |
| Timeline |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lion One Metals |
Pingtan Marine and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pingtan Marine and Lion One
The main advantage of trading using opposite Pingtan Marine and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pingtan Marine 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.| Pingtan Marine vs. Uranium Energy Corp | Pingtan Marine vs. Marfrig Global Foods | Pingtan Marine vs. FitLife Brands, Common | Pingtan Marine vs. Tyson Foods |
| Lion One vs. Advantage Solutions | Lion One vs. Atlas Corp | Lion One vs. PureCycle Technologies | Lion One vs. WM Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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