Correlation Between Lundin Mining and AfriTin Mining
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and AfriTin 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 Lundin Mining and AfriTin Mining 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 AfriTin Mining, you can compare the effects of market volatilities on Lundin Mining and AfriTin 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 Lundin Mining with a short position of AfriTin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and AfriTin Mining.
Diversification Opportunities for Lundin Mining and AfriTin Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and AfriTin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and AfriTin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfriTin Mining 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 AfriTin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfriTin Mining has no effect on the direction of Lundin Mining i.e., Lundin Mining and AfriTin Mining go up and down completely randomly.
Pair Corralation between Lundin Mining and AfriTin Mining
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 0.84 times more return on investment than AfriTin Mining. However, Lundin Mining Corp is 1.18 times less risky than AfriTin Mining. It trades about -0.02 of its potential returns per unit of risk. AfriTin Mining is currently generating about -0.16 per unit of risk. If you would invest 12,255 in Lundin Mining Corp on August 28, 2024 and sell it today you would lose (1,305) from holding Lundin Mining Corp or give up 10.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. AfriTin Mining
Performance |
| Timeline |
| Lundin Mining Corp |
| AfriTin Mining |
Lundin Mining and AfriTin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and AfriTin Mining
The main advantage of trading using opposite Lundin Mining and AfriTin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, AfriTin 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 AfriTin Mining will offset losses from the drop in AfriTin Mining's long position.| Lundin Mining vs. Playtech Plc | Lundin Mining vs. Naturhouse Health SA | Lundin Mining vs. Cardinal Health | Lundin Mining vs. Naked Wines plc |
| AfriTin Mining vs. Givaudan SA | AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Centamin PLC | AfriTin Mining vs. Atalaya Mining |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |