Correlation Between Loaded Lions and CMT

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

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

Diversification Opportunities for Loaded Lions and CMT

-0.38

Correlation Coefficient

Loaded Lions  CMT

Very good diversification

The 3 months correlation between Loaded and CMT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Loaded Lions and CMT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMT and Loaded Lions 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 Loaded Lions are associated (or correlated) with CMT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMT has no effect on the direction of Loaded Lions i.e., Loaded Lions and CMT go up and down completely randomly.

Pair Corralation between Loaded Lions and CMT

Assuming the 90 days trading horizon Loaded Lions is expected to generate 60.64 times more return on investment than CMT. However, Loaded Lions is 60.64 times more volatile than CMT. It trades about 0.12 of its potential returns per unit of risk. CMT is currently generating about -0.06 per unit of risk. If you would invest  0.00  in Loaded Lions on July 23, 2025 and sell it today you would earn a total of  1.09  from holding Loaded Lions or generate 9.223372036854776E16% return on investment over 90 days.

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

Loaded Lions  vs.  CMT

Loaded Lions

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Loaded Lions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Loaded Lions exhibited solid returns over the last few months and may actually be approaching a breakup point.

CMT

Risk-Adjusted Performance

Weakest

Over the last 90 days CMT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for CMT shareholders.

Pair Trading with Loaded Lions and CMT

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

The idea behind Loaded Lions and CMT 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.