Correlation Between MAS Gold and Lion One
Can any of the company-specific risk be diversified away by investing in both MAS Gold 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 MAS Gold and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAS Gold Corp and Lion One Metals, you can compare the effects of market volatilities on MAS Gold 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 MAS Gold with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Gold and Lion One.
Diversification Opportunities for MAS Gold and Lion One
Weak diversification
The 3 months correlation between MAS and Lion is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MAS Gold Corp 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 MAS Gold 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 MAS Gold Corp 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 MAS Gold i.e., MAS Gold and Lion One go up and down completely randomly.
Pair Corralation between MAS Gold and Lion One
Assuming the 90 days horizon MAS Gold Corp is expected to generate 7.78 times more return on investment than Lion One. However, MAS Gold is 7.78 times more volatile than Lion One Metals. It trades about 0.14 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.02 per unit of risk. If you would invest 2.00 in MAS Gold Corp on September 24, 2024 and sell it today you would earn a total of 0.00 from holding MAS Gold Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MAS Gold Corp vs. Lion One Metals
Performance |
Timeline |
MAS Gold Corp |
Lion One Metals |
MAS Gold and Lion One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MAS Gold and Lion One
The main advantage of trading using opposite MAS Gold and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Gold 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.MAS Gold vs. Wildsky Resources | MAS Gold vs. Q Gold Resources | MAS Gold vs. Plato Gold Corp | MAS Gold vs. Goldbank Mining Corp |
Lion One vs. Wildsky Resources | Lion One vs. Q Gold Resources | Lion One vs. Plato Gold Corp | Lion One vs. MAS 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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