Correlation Between NSAV Holding and Lion Group

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

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

Diversification Opportunities for NSAV Holding and Lion Group

-0.13

Correlation Coefficient

NSAV Holding  Lion Group

Good diversification

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

Pair Corralation between NSAV Holding and Lion Group

Given the investment horizon of 90 days NSAV Holding is expected to generate 2.17 times more return on investment than Lion Group. However, NSAV Holding is 2.17 times more volatile than Lion Group Holding. It trades about 0.06 of its potential returns per unit of risk. Lion Group Holding is currently generating about -0.11 per unit of risk. If you would invest  0.05  in NSAV Holding on December 27, 2024 and sell it today you would lose (0.01) from holding NSAV Holding or give up 20.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

NSAV Holding  vs.  Lion Group Holding

NSAV Holding

Risk-Adjusted Performance

Insignificant

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

Lion Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lion Group Holding 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 technical indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with NSAV Holding and Lion Group

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

The idea behind NSAV Holding and Lion Group Holding 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.