Correlation Between Via Renewables and Lion Group

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

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

Diversification Opportunities for Via Renewables and Lion Group

-0.84

Correlation Coefficient

Via Renewables  Lion Group

Pay attention - limited upside

The 3 months correlation between Via and Lion is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables and Lion Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Group Holding and Via Renewables 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 Via Renewables are associated (or correlated) with Lion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Group Holding has no effect on the direction of Via Renewables i.e., Via Renewables and Lion Group go up and down completely randomly.

Pair Corralation between Via Renewables and Lion Group

Assuming the 90 days horizon Via Renewables is expected to generate 0.11 times more return on investment than Lion Group. However, Via Renewables is 9.49 times less risky than Lion Group. It trades about 0.16 of its potential returns per unit of risk. Lion Group Holding is currently generating about -0.23 per unit of risk. If you would invest  2,249  in Via Renewables on January 3, 2025 and sell it today you would earn a total of  158.00  from holding Via Renewables or generate 7.03% return on investment over 90 days.

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

Via Renewables  vs.  Lion Group Holding

Via Renewables

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Via Renewables may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Lion Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lion Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Via Renewables and Lion Group

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

The idea behind Via Renewables and Lion Group Holding 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.