Correlation Between Lion One and Anterix

Can any of the company-specific risk be diversified away by investing in both Lion One and Anterix 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 Anterix 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 Anterix, you can compare the effects of market volatilities on Lion One and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Anterix.

Diversification Opportunities for Lion One and Anterix

0.19

Correlation Coefficient

Lion One  Anterix

Average diversification

The 3 months correlation between Lion and Anterix is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Lion One i.e., Lion One and Anterix go up and down completely randomly.

Pair Corralation between Lion One and Anterix

Assuming the 90 days horizon Lion One Metals is expected to under-perform the Anterix. In addition to that, Lion One is 1.64 times more volatile than Anterix. It trades about -0.09 of its total potential returns per unit of risk. Anterix is currently generating about 0.0 per unit of volatility. If you would invest  3,378  in Anterix on September 20, 2024 and sell it today you would lose (373.00) from holding Anterix or give up 11.04% of portfolio value over 90 days.

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

Lion One Metals  vs.  Anterix

Lion One Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lion One Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lion One and Anterix

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

The idea behind Lion One Metals and Anterix 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.