Correlation Between Match and Lion One
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By analyzing existing cross correlation between Match Group 5625 and Lion One Metals, you can compare the effects of market volatilities on Match 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 Match with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Match and Lion One.
Diversification Opportunities for Match and Lion One
Modest diversification
The 3 months correlation between Match and Lion is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Match Group 5625 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 Match 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 Match Group 5625 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 Match i.e., Match and Lion One go up and down completely randomly.
Pair Corralation between Match and Lion One
Assuming the 90 days trading horizon Match Group 5625 is expected to generate 0.16 times more return on investment than Lion One. However, Match Group 5625 is 6.4 times less risky than Lion One. It trades about -0.02 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 9,575 in Match Group 5625 on September 3, 2024 and sell it today you would lose (312.00) from holding Match Group 5625 or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.64% |
| Values | Daily Returns |
Match Group 5625 vs. Lion One Metals
Performance |
| Timeline |
| Match Group 5625 |
| Lion One Metals |
Match and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Match and Lion One
The main advantage of trading using opposite Match and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Match 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.The idea behind Match Group 5625 and Lion One Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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