Correlation Between MARKET VECTR and Lion Biotechnologies
Can any of the company-specific risk be diversified away by investing in both MARKET VECTR and Lion Biotechnologies 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 MARKET VECTR and Lion Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MARKET VECTR RETAIL and Lion Biotechnologies, you can compare the effects of market volatilities on MARKET VECTR and Lion Biotechnologies 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 MARKET VECTR with a short position of Lion Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and Lion Biotechnologies.
Diversification Opportunities for MARKET VECTR and Lion Biotechnologies
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between MARKET and Lion is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL and Lion Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Biotechnologies and MARKET VECTR 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 MARKET VECTR RETAIL are associated (or correlated) with Lion Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Biotechnologies has no effect on the direction of MARKET VECTR i.e., MARKET VECTR and Lion Biotechnologies go up and down completely randomly.
Pair Corralation between MARKET VECTR and Lion Biotechnologies
Assuming the 90 days trading horizon MARKET VECTR RETAIL is expected to generate 0.24 times more return on investment than Lion Biotechnologies. However, MARKET VECTR RETAIL is 4.24 times less risky than Lion Biotechnologies. It trades about 0.31 of its potential returns per unit of risk. Lion Biotechnologies is currently generating about -0.1 per unit of risk. If you would invest 20,210 in MARKET VECTR RETAIL on August 29, 2024 and sell it today you would earn a total of 1,745 from holding MARKET VECTR RETAIL or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MARKET VECTR RETAIL vs. Lion Biotechnologies
Performance |
| Timeline |
| MARKET VECTR RETAIL |
| Lion Biotechnologies |
MARKET VECTR and Lion Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKET VECTR and Lion Biotechnologies
The main advantage of trading using opposite MARKET VECTR and Lion Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR position performs unexpectedly, Lion Biotechnologies 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 Biotechnologies will offset losses from the drop in Lion Biotechnologies' long position.| MARKET VECTR vs. Apple Inc | MARKET VECTR vs. Apple Inc | MARKET VECTR vs. Microsoft | MARKET VECTR vs. Microsoft |
| Lion Biotechnologies vs. Nucletron Electronic Aktiengesellschaft | Lion Biotechnologies vs. ELECTRONIC ARTS | Lion Biotechnologies vs. Electronic Arts | Lion Biotechnologies vs. BYD ELECTRONIC |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets |