Correlation Between Lundin Mining and Celebrus Technologies
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Celebrus Technologies 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 Celebrus Technologies 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 Celebrus Technologies plc, you can compare the effects of market volatilities on Lundin Mining and Celebrus Technologies 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 Celebrus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Celebrus Technologies.
Diversification Opportunities for Lundin Mining and Celebrus Technologies
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lundin and Celebrus is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Celebrus Technologies plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebrus Technologies plc 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 Celebrus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebrus Technologies plc has no effect on the direction of Lundin Mining i.e., Lundin Mining and Celebrus Technologies go up and down completely randomly.
Pair Corralation between Lundin Mining and Celebrus Technologies
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 1.28 times more return on investment than Celebrus Technologies. However, Lundin Mining is 1.28 times more volatile than Celebrus Technologies plc. It trades about -0.06 of its potential returns per unit of risk. Celebrus Technologies plc is currently generating about -0.29 per unit of risk. If you would invest 9,810 in Lundin Mining Corp on October 25, 2024 and sell it today you would lose (290.00) from holding Lundin Mining Corp or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. Celebrus Technologies plc
Performance |
| Timeline |
| Lundin Mining Corp |
| Celebrus Technologies plc |
Lundin Mining and Celebrus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Celebrus Technologies
The main advantage of trading using opposite Lundin Mining and Celebrus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Celebrus Technologies 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 Celebrus Technologies will offset losses from the drop in Celebrus Technologies' long position.| Lundin Mining vs. Edita Food Industries | Lundin Mining vs. Baker Steel Resources | Lundin Mining vs. Grieg Seafood | Lundin Mining vs. Monster Beverage Corp |
| Celebrus Technologies vs. Verizon Communications | Celebrus Technologies vs. Summit Materials Cl | Celebrus Technologies vs. Austevoll Seafood ASA | Celebrus Technologies vs. Hilton Food 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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