Correlation Between Lion One and Global Crossing

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

Diversification Opportunities for Lion One and Global Crossing

0.1

Correlation Coefficient

Lion One  Global Crossing

Average diversification

The 3 months correlation between Lion and Global is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Lion One i.e., Lion One and Global Crossing go up and down completely randomly.

Pair Corralation between Lion One and Global Crossing

Assuming the 90 days horizon Lion One Metals is expected to under-perform the Global Crossing. In addition to that, Lion One is 1.01 times more volatile than Global Crossing Airlines. It trades about 0.0 of its total potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.0 per unit of volatility. If you would invest  83.00  in Global Crossing Airlines on May 6, 2025 and sell it today you would lose (2.00) from holding Global Crossing Airlines or give up 2.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Lion One Metals  vs.  Global Crossing Airlines

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 fairly stable basic indicators, Lion One is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Global Crossing Airlines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Global Crossing is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Lion One and Global Crossing

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

The idea behind Lion One Metals and Global Crossing Airlines 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.