Correlation Between Integra Resources and Lion One

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

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

Diversification Opportunities for Integra Resources and Lion One

0.06

Correlation Coefficient

Integra Resources  Lion One

Significant diversification

The 3 months correlation between Integra and Lion is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources 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 Integra Resources 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 Integra Resources 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 Integra Resources i.e., Integra Resources and Lion One go up and down completely randomly.

Pair Corralation between Integra Resources and Lion One

Assuming the 90 days horizon Integra Resources is expected to generate 1.18 times less return on investment than Lion One. But when comparing it to its historical volatility, Integra Resources Corp is 1.9 times less risky than Lion One. It trades about 0.18 of its potential returns per unit of risk. Lion One Metals is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Lion One Metals on December 29, 2024 and sell it today you would earn a total of  9.00  from holding Lion One Metals or generate 39.13% return on investment over 90 days.

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

Integra Resources Corp  vs.  Lion One Metals

Integra Resources Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Integra Resources Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Integra Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Lion One Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lion One Metals are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Lion One showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integra Resources and Lion One

The main advantage of trading using opposite Integra Resources and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources 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.

The idea behind Integra Resources Corp and Lion One Metals 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.