Correlation Between Coor Service and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Lundin Mining Corp, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Lundin Mining.
Diversification Opportunities for Coor Service and Lundin Mining
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coor and Lundin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management 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 Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and Lundin Mining go up and down completely randomly.
Pair Corralation between Coor Service and Lundin Mining
Assuming the 90 days trading horizon Coor Service Management is expected to generate 0.55 times more return on investment than Lundin Mining. However, Coor Service Management is 1.81 times less risky than Lundin Mining. It trades about 0.38 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about -0.06 per unit of risk. If you would invest 3,046 in Coor Service Management on November 27, 2024 and sell it today you would earn a total of 359.00 from holding Coor Service Management or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coor Service Management vs. Lundin Mining Corp
Performance |
| Timeline |
| Coor Service Management |
| Lundin Mining Corp |
Coor Service and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Lundin Mining
The main advantage of trading using opposite Coor Service and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.| Coor Service vs. Universal Health Services | Coor Service vs. Naked Wines plc | Coor Service vs. Air Products Chemicals | Coor Service vs. Cardinal Health |
| Lundin Mining vs. Resolute Mining Limited | Lundin Mining vs. First Class Metals | Lundin Mining vs. GreenX Metals | Lundin Mining vs. Eastinco Mining Exploration |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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