Correlation Between Robex Resources and Lion One
Can any of the company-specific risk be diversified away by investing in both Robex Resources 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 Robex Resources and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robex Resources and Lion One Metals, you can compare the effects of market volatilities on Robex Resources 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 Robex Resources with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and Lion One.
Diversification Opportunities for Robex Resources and Lion One
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Robex and Lion is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources 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 Robex Resources 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 Robex Resources 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 Robex Resources i.e., Robex Resources and Lion One go up and down completely randomly.
Pair Corralation between Robex Resources and Lion One
Assuming the 90 days horizon Robex Resources is expected to generate 17.64 times more return on investment than Lion One. However, Robex Resources is 17.64 times more volatile than Lion One Metals. It trades about 0.07 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.08 per unit of risk. If you would invest 164.00 in Robex Resources on August 25, 2024 and sell it today you would earn a total of 20.00 from holding Robex Resources or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.52% |
| Values | Daily Returns |
Robex Resources vs. Lion One Metals
Performance |
| Timeline |
| Robex Resources |
| Lion One Metals |
Robex Resources and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robex Resources and Lion One
The main advantage of trading using opposite Robex Resources and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robex Resources 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.| Robex Resources vs. Ascendant Resources | Robex Resources vs. Cantex Mine Development | Robex Resources vs. Amarc Resources | Robex Resources vs. Sterling Metals Corp |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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