Correlation Between Lundin Mining and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Tyson Foods 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 Tyson Foods 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 Tyson Foods Cl, you can compare the effects of market volatilities on Lundin Mining and Tyson Foods 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 Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Tyson Foods.
Diversification Opportunities for Lundin Mining and Tyson Foods
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and Tyson is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Tyson Foods Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods Cl 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 Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods Cl has no effect on the direction of Lundin Mining i.e., Lundin Mining and Tyson Foods go up and down completely randomly.
Pair Corralation between Lundin Mining and Tyson Foods
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 1.8 times more return on investment than Tyson Foods. However, Lundin Mining is 1.8 times more volatile than Tyson Foods Cl. It trades about 0.05 of its potential returns per unit of risk. Tyson Foods Cl is currently generating about 0.0 per unit of risk. If you would invest 10,323 in Lundin Mining Corp on August 28, 2024 and sell it today you would earn a total of 627.00 from holding Lundin Mining Corp or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Lundin Mining Corp vs. Tyson Foods Cl
Performance |
| Timeline |
| Lundin Mining Corp |
| Tyson Foods Cl |
Lundin Mining and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Tyson Foods
The main advantage of trading using opposite Lundin Mining and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Hyundai Motor | Lundin Mining vs. Toyota Motor Corp |
| Tyson Foods vs. Samsung Electronics Co | Tyson Foods vs. Samsung Electronics Co | Tyson Foods vs. Hyundai Motor | Tyson Foods 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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