Correlation Between Lundin Mining and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Blackstone Loan 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 Blackstone Loan 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 Blackstone Loan Financing, you can compare the effects of market volatilities on Lundin Mining and Blackstone Loan 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 Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Blackstone Loan.
Diversification Opportunities for Lundin Mining and Blackstone Loan
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lundin and Blackstone is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Lundin Mining i.e., Lundin Mining and Blackstone Loan go up and down completely randomly.
Pair Corralation between Lundin Mining and Blackstone Loan
Assuming the 90 days trading horizon Lundin Mining is expected to generate 4.22 times less return on investment than Blackstone Loan. In addition to that, Lundin Mining is 1.13 times more volatile than Blackstone Loan Financing. It trades about 0.06 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.29 per unit of volatility. If you would invest 5,750 in Blackstone Loan Financing on September 2, 2024 and sell it today you would earn a total of 750.00 from holding Blackstone Loan Financing or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. Blackstone Loan Financing
Performance |
| Timeline |
| Lundin Mining Corp |
| Blackstone Loan Financing |
Lundin Mining and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Blackstone Loan
The main advantage of trading using opposite Lundin Mining and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.| Lundin Mining vs. Supermarket Income REIT | Lundin Mining vs. Ecclesiastical Insurance Office | Lundin Mining vs. Batm Advanced Communications | Lundin Mining vs. Team Internet Group |
| Blackstone Loan vs. Fulcrum Metals PLC | Blackstone Loan vs. Alliance Data Systems | Blackstone Loan vs. European Metals Holdings | Blackstone Loan vs. Empire Metals Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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