Correlation Between Titan International and Lion One
Can any of the company-specific risk be diversified away by investing in both Titan International 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 Titan International and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan International and Lion One Metals, you can compare the effects of market volatilities on Titan International 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 Titan International with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan International and Lion One.
Diversification Opportunities for Titan International and Lion One
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Titan and Lion is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Titan International 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 Titan International 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 Titan International 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 Titan International i.e., Titan International and Lion One go up and down completely randomly.
Pair Corralation between Titan International and Lion One
Considering the 90-day investment horizon Titan International is expected to under-perform the Lion One. In addition to that, Titan International is 1.17 times more volatile than Lion One Metals. It trades about -0.03 of its total potential returns per unit of risk. Lion One Metals is currently generating about -0.01 per unit of volatility. If you would invest 22.00 in Lion One Metals on September 2, 2024 and sell it today you would lose (1.00) from holding Lion One Metals or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan International vs. Lion One Metals
Performance |
| Timeline |
| Titan International |
| Lion One Metals |
Titan International and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan International and Lion One
The main advantage of trading using opposite Titan International and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International 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.| Titan International vs. Shyft Group | Titan International vs. Manitowoc | Titan International vs. Oshkosh | Titan International vs. Terex |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |