Correlation Between Lion Electric and Titan Logix

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

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

Diversification Opportunities for Lion Electric and Titan Logix

0.0

Correlation Coefficient

Lion Electric  Titan Logix

Pay attention - limited upside

The 3 months correlation between Lion and Titan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lion Electric Corp and Titan Logix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Logix Corp and Lion Electric 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 Electric Corp are associated (or correlated) with Titan Logix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Logix Corp has no effect on the direction of Lion Electric i.e., Lion Electric and Titan Logix go up and down completely randomly.

Pair Corralation between Lion Electric and Titan Logix

If you would invest  34.00  in Titan Logix Corp on December 2, 2024 and sell it today you would earn a total of  0.00  from holding Titan Logix Corp or generate 0.0% return on investment over 90 days.

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

Lion Electric Corp  vs.  Titan Logix Corp

Lion Electric Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lion Electric Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Lion Electric is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Titan Logix Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Titan Logix Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Titan Logix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lion Electric and Titan Logix

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

The idea behind Lion Electric Corp and Titan Logix 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.