Correlation Between Loaded Lions and TNB

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

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

Diversification Opportunities for Loaded Lions and TNB

-0.21

Correlation Coefficient

Loaded Lions  TNB

Very good diversification

The 3 months correlation between Loaded and TNB is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Loaded Lions and TNB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNB 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 TNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNB has no effect on the direction of Loaded Lions i.e., Loaded Lions and TNB go up and down completely randomly.

Pair Corralation between Loaded Lions and TNB

Assuming the 90 days trading horizon Loaded Lions is expected to generate 12.77 times more return on investment than TNB. However, Loaded Lions is 12.77 times more volatile than TNB. It trades about 0.13 of its potential returns per unit of risk. TNB is currently generating about -0.12 per unit of risk. If you would invest  0.00  in Loaded Lions on July 11, 2025 and sell it today you would earn a total of  1.51  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.  TNB

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.

TNB

Risk-Adjusted Performance

Weakest

Over the last 90 days TNB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental drivers remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for TNB shareholders.

Pair Trading with Loaded Lions and TNB

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

The idea behind Loaded Lions and TNB 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.