Correlation Between Gaztransport and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Lundin Mining 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 Gaztransport and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Lundin Mining Corp, you can compare the effects of market volatilities on Gaztransport and Lundin Mining 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 Gaztransport with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Lundin Mining.
Diversification Opportunities for Gaztransport and Lundin Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Lundin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Lundin Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining Corp and Gaztransport 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 Gaztransport et Technigaz are associated (or correlated) with Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining Corp has no effect on the direction of Gaztransport i.e., Gaztransport and Lundin Mining go up and down completely randomly.
Pair Corralation between Gaztransport and Lundin Mining
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.41 times more return on investment than Lundin Mining. However, Gaztransport et Technigaz is 2.42 times less risky than Lundin Mining. It trades about 0.14 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about 0.02 per unit of risk. If you would invest 13,656 in Gaztransport et Technigaz on August 28, 2024 and sell it today you would earn a total of 454.00 from holding Gaztransport et Technigaz or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Lundin Mining Corp
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Lundin Mining Corp |
Gaztransport and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Lundin Mining
The main advantage of trading using opposite Gaztransport and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Lundin Mining 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 Lundin Mining will offset losses from the drop in Lundin Mining's long position.| Gaztransport vs. Bank of Ireland | Gaztransport vs. Sydbank | Gaztransport vs. Ecofin Global Utilities | Gaztransport vs. Sealed Air Corp |
| Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Hyundai Motor | Lundin Mining vs. Toyota Motor Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |