Correlation Between Lundin Mining and SM Energy
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and SM Energy 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 SM Energy 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 SM Energy Co, you can compare the effects of market volatilities on Lundin Mining and SM Energy 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 SM Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and SM Energy.
Diversification Opportunities for Lundin Mining and SM Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lundin and 0KZA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and SM Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SM Energy 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 SM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM Energy has no effect on the direction of Lundin Mining i.e., Lundin Mining and SM Energy go up and down completely randomly.
Pair Corralation between Lundin Mining and SM Energy
If you would invest (100.00) in SM Energy Co on November 6, 2024 and sell it today you would earn a total of 100.00 from holding SM Energy Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. SM Energy Co
Performance |
| Timeline |
| Lundin Mining Corp |
| SM Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lundin Mining and SM Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and SM Energy
The main advantage of trading using opposite Lundin Mining and SM Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, SM Energy 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 SM Energy will offset losses from the drop in SM Energy's long position.| Lundin Mining vs. United Airlines Holdings | Lundin Mining vs. Jacquet Metal Service | Lundin Mining vs. Cardinal Health | Lundin Mining vs. Coeur Mining |
| SM Energy vs. TechnipFMC PLC | SM Energy vs. Auction Technology Group | SM Energy vs. Concurrent Technologies Plc | SM Energy vs. Made Tech Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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