Correlation Between Lundin Mining and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Lundin Mining and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Batm Advanced.
Diversification Opportunities for Lundin Mining and Batm Advanced
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and Batm is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Lundin Mining i.e., Lundin Mining and Batm Advanced go up and down completely randomly.
Pair Corralation between Lundin Mining and Batm Advanced
Assuming the 90 days trading horizon Lundin Mining Corp is expected to under-perform the Batm Advanced. In addition to that, Lundin Mining is 1.11 times more volatile than Batm Advanced Communications. It trades about -0.15 of its total potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.04 per unit of volatility. If you would invest 1,838 in Batm Advanced Communications on November 4, 2024 and sell it today you would earn a total of 20.00 from holding Batm Advanced Communications or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. Batm Advanced Communications
Performance |
| Timeline |
| Lundin Mining Corp |
| Batm Advanced Commun |
Lundin Mining and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Batm Advanced
The main advantage of trading using opposite Lundin Mining and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Lundin Mining vs. Bankers Investment Trust | Lundin Mining vs. Metro Bank PLC | Lundin Mining vs. Southwest Airlines Co | Lundin Mining vs. McEwen Mining |
| Batm Advanced vs. Ecclesiastical Insurance Office | Batm Advanced vs. Porvair plc | Batm Advanced vs. Finnair Oyj | Batm Advanced vs. STMicroelectronics NV |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |