Correlation Between LION ONE and General Mills

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

Diversification Opportunities for LION ONE and General Mills

0.26

Correlation Coefficient

LION ONE  General Mills

Modest diversification

The 3 months correlation between LION and General is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of LION ONE i.e., LION ONE and General Mills go up and down completely randomly.

Pair Corralation between LION ONE and General Mills

Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the General Mills. In addition to that, LION ONE is 3.57 times more volatile than General Mills. It trades about -0.02 of its total potential returns per unit of risk. General Mills is currently generating about -0.05 per unit of volatility. If you would invest  6,580  in General Mills on March 24, 2025 and sell it today you would lose (1,975) from holding General Mills or give up 30.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.8%
Values	Daily Returns

LION ONE METALS  vs.  General Mills

LION ONE METALS

Risk-Adjusted Performance

Very Weak

Over the last 90 days LION ONE METALS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

General Mills

Risk-Adjusted Performance

Very Weak

Over the last 90 days General Mills has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with LION ONE and General Mills

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

The idea behind LION ONE METALS and General Mills 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.