Correlation Between Sixty North and Lion One
Can any of the company-specific risk be diversified away by investing in both Sixty North 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 Sixty North and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixty North Gold and Lion One Metals, you can compare the effects of market volatilities on Sixty North 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 Sixty North with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty North and Lion One.
Diversification Opportunities for Sixty North and Lion One
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sixty and Lion is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sixty North Gold 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 Sixty North 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 Sixty North Gold 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 Sixty North i.e., Sixty North and Lion One go up and down completely randomly.
Pair Corralation between Sixty North and Lion One
Assuming the 90 days horizon Sixty North is expected to generate 11.73 times less return on investment than Lion One. In addition to that, Sixty North is 3.42 times more volatile than Lion One Metals. It trades about 0.01 of its total potential returns per unit of risk. Lion One Metals is currently generating about 0.23 per unit of volatility. If you would invest 18.00 in Lion One Metals on October 13, 2024 and sell it today you would earn a total of 3.00 from holding Lion One Metals or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Sixty North Gold vs. Lion One Metals
Performance |
| Timeline |
| Sixty North Gold |
| Lion One Metals |
Sixty North and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty North and Lion One
The main advantage of trading using opposite Sixty North and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty North 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.| Sixty North vs. Newmont Goldcorp Corp | Sixty North vs. Zijin Mining Group | Sixty North vs. Agnico Eagle Mines | Sixty North vs. Barrick Gold Corp |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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