Correlation Between 06051GFP9 and Lion One
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By analyzing existing cross correlation between BANK AMER P and Lion One Metals, you can compare the effects of market volatilities on 06051GFP9 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 06051GFP9 with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06051GFP9 and Lion One.
Diversification Opportunities for 06051GFP9 and Lion One
Very weak diversification
The 3 months correlation between 06051GFP9 and Lion is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BANK AMER P 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 06051GFP9 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 BANK AMER P 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 06051GFP9 i.e., 06051GFP9 and Lion One go up and down completely randomly.
Pair Corralation between 06051GFP9 and Lion One
Assuming the 90 days trading horizon BANK AMER P is expected to generate 0.11 times more return on investment than Lion One. However, BANK AMER P is 8.77 times less risky than Lion One. It trades about -0.21 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.35 per unit of risk. If you would invest 9,961 in BANK AMER P on August 28, 2024 and sell it today you would lose (137.00) from holding BANK AMER P or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK AMER P vs. Lion One Metals
Performance |
| Timeline |
| BANK AMER P |
| Lion One Metals |
06051GFP9 and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 06051GFP9 and Lion One
The main advantage of trading using opposite 06051GFP9 and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06051GFP9 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.| 06051GFP9 vs. Lion One Metals | 06051GFP9 vs. Stepan Company | 06051GFP9 vs. JD Sports Fashion | 06051GFP9 vs. Old Dominion Freight |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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