Correlation Between Lundin Mining and Thales
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Thales 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 Lundin Mining and Thales into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining Corp and Thales, you can compare the effects of market volatilities on Lundin Mining and Thales 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 Lundin Mining with a short position of Thales. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Thales.
Diversification Opportunities for Lundin Mining and Thales
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lundin and Thales is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Thales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thales and Lundin Mining 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 Lundin Mining Corp are associated (or correlated) with Thales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thales has no effect on the direction of Lundin Mining i.e., Lundin Mining and Thales go up and down completely randomly.
Pair Corralation between Lundin Mining and Thales
If you would invest 8,566 in Lundin Mining Corp on September 12, 2024 and sell it today you would earn a total of 1,924 from holding Lundin Mining Corp or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
Lundin Mining Corp vs. Thales
Performance |
| Timeline |
| Lundin Mining Corp |
| Thales |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lundin Mining and Thales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Thales
The main advantage of trading using opposite Lundin Mining and Thales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Thales 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 Thales will offset losses from the drop in Thales' long position.| Lundin Mining vs. Hong Kong Land | Lundin Mining vs. Neometals | Lundin Mining vs. Coor Service Management | Lundin Mining vs. Fidelity Sustainable USD |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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