Correlation Between Paysafe and Lion One
Can any of the company-specific risk be diversified away by investing in both Paysafe 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 Paysafe and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paysafe and Lion One Metals, you can compare the effects of market volatilities on Paysafe 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 Paysafe with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paysafe and Lion One.
Diversification Opportunities for Paysafe and Lion One
Poor diversification
The 3 months correlation between Paysafe and Lion is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe 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 Paysafe 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 Paysafe 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 Paysafe i.e., Paysafe and Lion One go up and down completely randomly.
Pair Corralation between Paysafe and Lion One
Given the investment horizon of 90 days Paysafe is expected to under-perform the Lion One. In addition to that, Paysafe is 1.02 times more volatile than Lion One Metals. It trades about -0.06 of its total potential returns per unit of risk. Lion One Metals is currently generating about -0.05 per unit of volatility. If you would invest 25.00 in Lion One Metals on October 25, 2024 and sell it today you would lose (4.00) from holding Lion One Metals or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Paysafe vs. Lion One Metals
Performance |
| Timeline |
| Paysafe |
| Lion One Metals |
Paysafe and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paysafe and Lion One
The main advantage of trading using opposite Paysafe and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe 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.| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
| Lion One vs. Arctic Star Exploration | Lion One vs. American Clean Resources | Lion One vs. Arras Minerals Corp | Lion One vs. American Creek Resources |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |