Correlation Between Lion One and INTEL CDR

Can any of the company-specific risk be diversified away by investing in both Lion One and INTEL CDR 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 Lion One and INTEL CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lion One Metals and INTEL CDR, you can compare the effects of market volatilities on Lion One and INTEL CDR 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 Lion One with a short position of INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and INTEL CDR.

Diversification Opportunities for Lion One and INTEL CDR

0.16

Correlation Coefficient

Lion One  INTEL CDR

Average diversification

The 3 months correlation between Lion and INTEL is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR and Lion One 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 Lion One Metals are associated (or correlated) with INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of Lion One i.e., Lion One and INTEL CDR go up and down completely randomly.

Pair Corralation between Lion One and INTEL CDR

Assuming the 90 days horizon Lion One Metals is expected to under-perform the INTEL CDR. In addition to that, Lion One is 1.39 times more volatile than INTEL CDR. It trades about -0.26 of its total potential returns per unit of risk. INTEL CDR is currently generating about 0.11 per unit of volatility. If you would invest  1,324  in INTEL CDR on September 4, 2024 and sell it today you would earn a total of  83.00  from holding INTEL CDR or generate 6.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lion One Metals  vs.  INTEL CDR

Lion One Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lion One Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Lion One is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

INTEL CDR

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INTEL CDR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, INTEL CDR exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lion One and INTEL CDR

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

The idea behind Lion One Metals and INTEL CDR 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 Transaction History module to view history of all your transactions and understand their impact on performance.