Correlation Between Lionheart Holdings and Ubiquiti Networks
Can any of the company-specific risk be diversified away by investing in both Lionheart Holdings and Ubiquiti Networks 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 Lionheart Holdings and Ubiquiti Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lionheart Holdings and Ubiquiti Networks, you can compare the effects of market volatilities on Lionheart Holdings and Ubiquiti Networks 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 Lionheart Holdings with a short position of Ubiquiti Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionheart Holdings and Ubiquiti Networks.
Diversification Opportunities for Lionheart Holdings and Ubiquiti Networks
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lionheart and Ubiquiti is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lionheart Holdings and Ubiquiti Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubiquiti Networks and Lionheart Holdings 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 Lionheart Holdings are associated (or correlated) with Ubiquiti Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubiquiti Networks has no effect on the direction of Lionheart Holdings i.e., Lionheart Holdings and Ubiquiti Networks go up and down completely randomly.
Pair Corralation between Lionheart Holdings and Ubiquiti Networks
Considering the 90-day investment horizon Lionheart Holdings is expected to generate 39.09 times less return on investment than Ubiquiti Networks. But when comparing it to its historical volatility, Lionheart Holdings is 46.06 times less risky than Ubiquiti Networks. It trades about 0.14 of its potential returns per unit of risk. Ubiquiti Networks is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 40,219 in Ubiquiti Networks on August 15, 2025 and sell it today you would earn a total of 15,546 from holding Ubiquiti Networks or generate 38.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lionheart Holdings vs. Ubiquiti Networks
Performance |
| Timeline |
| Lionheart Holdings |
| Ubiquiti Networks |
Lionheart Holdings and Ubiquiti Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lionheart Holdings and Ubiquiti Networks
The main advantage of trading using opposite Lionheart Holdings and Ubiquiti Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionheart Holdings position performs unexpectedly, Ubiquiti Networks 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 Ubiquiti Networks will offset losses from the drop in Ubiquiti Networks' long position.| Lionheart Holdings vs. Oxley Bridge Acquisition | Lionheart Holdings vs. ProCap Acquisition Corp | Lionheart Holdings vs. SIM Acquisition Corp | Lionheart Holdings vs. Vine Hill Capital |
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Check out your portfolio center.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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