Correlation Between Lionheart Holdings and Concord Acquisition

Can any of the company-specific risk be diversified away by investing in both Lionheart Holdings and Concord Acquisition 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 Lionheart Holdings and Concord Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lionheart Holdings and Concord Acquisition Corp, you can compare the effects of market volatilities on Lionheart Holdings and Concord Acquisition 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 Lionheart Holdings with a short position of Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionheart Holdings and Concord Acquisition.

Diversification Opportunities for Lionheart Holdings and Concord Acquisition

-0.33

Correlation Coefficient

Lionheart Holdings  Concord Acquisition

Very good diversification

The 3 months correlation between Lionheart and Concord is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lionheart Holdings and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp and Lionheart Holdings 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 Lionheart Holdings are associated (or correlated) with Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Lionheart Holdings i.e., Lionheart Holdings and Concord Acquisition go up and down completely randomly.

Pair Corralation between Lionheart Holdings and Concord Acquisition

If you would invest  1,000.00  in Lionheart Holdings on September 28, 2024 and sell it today you would earn a total of  9.00  from holding Lionheart Holdings or generate 0.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lionheart Holdings  vs.  Concord Acquisition Corp

Lionheart Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lionheart Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Lionheart Holdings is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Concord Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concord Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Concord Acquisition is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lionheart Holdings and Concord Acquisition

The main advantage of trading using opposite Lionheart Holdings and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionheart Holdings position performs unexpectedly, Concord Acquisition 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.

The idea behind Lionheart Holdings and Concord Acquisition Corp 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.