Correlation Between Lion One and HALSTEAD JAMES

Can any of the company-specific risk be diversified away by investing in both Lion One and HALSTEAD JAMES 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 HALSTEAD JAMES 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 HALSTEAD JAMES LS 05, you can compare the effects of market volatilities on Lion One and HALSTEAD JAMES 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 HALSTEAD JAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and HALSTEAD JAMES.

Diversification Opportunities for Lion One and HALSTEAD JAMES

-0.51

Correlation Coefficient

Lion One  HALSTEAD JAMES

Excellent diversification

The 3 months correlation between Lion and HALSTEAD is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and HALSTEAD JAMES LS 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALSTEAD JAMES LS 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 HALSTEAD JAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALSTEAD JAMES LS has no effect on the direction of Lion One i.e., Lion One and HALSTEAD JAMES go up and down completely randomly.

Pair Corralation between Lion One and HALSTEAD JAMES

Assuming the 90 days horizon Lion One Metals is expected to under-perform the HALSTEAD JAMES. In addition to that, Lion One is 1.52 times more volatile than HALSTEAD JAMES LS 05. It trades about -0.18 of its total potential returns per unit of risk. HALSTEAD JAMES LS 05 is currently generating about -0.11 per unit of volatility. If you would invest  224.00  in HALSTEAD JAMES LS 05 on September 20, 2024 and sell it today you would lose (16.00) from holding HALSTEAD JAMES LS 05 or give up 7.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Lion One Metals  vs.  HALSTEAD JAMES LS 05

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 fragile performance in the last few months, the Stock's basic 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.

HALSTEAD JAMES LS

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HALSTEAD JAMES LS 05 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking indicators, HALSTEAD JAMES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lion One and HALSTEAD JAMES

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

The idea behind Lion One Metals and HALSTEAD JAMES LS 05 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.