Correlation Between Lion One and SERI INDUSTRIAL

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

Diversification Opportunities for Lion One and SERI INDUSTRIAL

0.54

Correlation Coefficient

Lion One  SERI INDUSTRIAL

Very weak diversification

The 3 months correlation between Lion and SERI is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO 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 SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of Lion One i.e., Lion One and SERI INDUSTRIAL go up and down completely randomly.

Pair Corralation between Lion One and SERI INDUSTRIAL

Assuming the 90 days horizon Lion One is expected to generate 2.8 times less return on investment than SERI INDUSTRIAL. But when comparing it to its historical volatility, Lion One Metals is 1.16 times less risky than SERI INDUSTRIAL. It trades about 0.02 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  195.00  in SERI INDUSTRIAL EO on April 24, 2025 and sell it today you would earn a total of  12.00  from holding SERI INDUSTRIAL EO or generate 6.15% return on investment over 90 days.

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

Lion One Metals  vs.  SERI INDUSTRIAL EO

Lion One Metals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lion One Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Lion One is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SERI INDUSTRIAL EO

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SERI INDUSTRIAL EO are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, SERI INDUSTRIAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Lion One and SERI INDUSTRIAL

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

The idea behind Lion One Metals and SERI INDUSTRIAL EO 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.