Correlation Between Lion One and CleanCore Solutions

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

Diversification Opportunities for Lion One and CleanCore Solutions

-0.13

Correlation Coefficient

Lion One  CleanCore Solutions

Good diversification

The 3 months correlation between Lion and CleanCore is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and CleanCore Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanCore Solutions 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 CleanCore Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanCore Solutions has no effect on the direction of Lion One i.e., Lion One and CleanCore Solutions go up and down completely randomly.

Pair Corralation between Lion One and CleanCore Solutions

Assuming the 90 days horizon Lion One Metals is expected to under-perform the CleanCore Solutions. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 2.69 times less risky than CleanCore Solutions. The otc stock trades about -0.07 of its potential returns per unit of risk. The CleanCore Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  150.00  in CleanCore Solutions on September 12, 2024 and sell it today you would earn a total of  11.00  from holding CleanCore Solutions or generate 7.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Lion One Metals  vs.  CleanCore Solutions

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 latest abnormal performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CleanCore Solutions

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CleanCore Solutions are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, CleanCore Solutions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lion One and CleanCore Solutions

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

The idea behind Lion One Metals and CleanCore Solutions 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.