Correlation Between United Internet and Lion One
Can any of the company-specific risk be diversified away by investing in both United Internet 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 United Internet and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and Lion One Metals, you can compare the effects of market volatilities on United Internet 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 United Internet with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and Lion One.
Diversification Opportunities for United Internet and Lion One
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Lion is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG 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 United Internet 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 United Internet AG 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 United Internet i.e., United Internet and Lion One go up and down completely randomly.
Pair Corralation between United Internet and Lion One
Assuming the 90 days trading horizon United Internet AG is expected to generate 0.53 times more return on investment than Lion One. However, United Internet AG is 1.9 times less risky than Lion One. It trades about 0.0 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.03 per unit of risk. If you would invest 1,852 in United Internet AG on September 3, 2024 and sell it today you would lose (286.00) from holding United Internet AG or give up 15.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Internet AG vs. Lion One Metals
Performance |
| Timeline |
| United Internet AG |
| Lion One Metals |
United Internet and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Internet and Lion One
The main advantage of trading using opposite United Internet and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet 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.| United Internet vs. T Mobile | United Internet vs. China Mobile Limited | United Internet vs. ATT Inc | United Internet vs. Nippon Telegraph and |
| Lion One vs. Cars Inc | Lion One vs. Chunghwa Telecom Co | Lion One vs. United Internet AG | Lion One vs. JAPAN TOBACCO UNSPADR12 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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