Correlation Between Lundin Mining and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Dalata Hotel 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 Dalata Hotel 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 Dalata Hotel Group, you can compare the effects of market volatilities on Lundin Mining and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Dalata Hotel.
Diversification Opportunities for Lundin Mining and Dalata Hotel
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lundin and Dalata is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Lundin Mining i.e., Lundin Mining and Dalata Hotel go up and down completely randomly.
Pair Corralation between Lundin Mining and Dalata Hotel
Assuming the 90 days trading horizon Lundin Mining is expected to generate 14.61 times less return on investment than Dalata Hotel. In addition to that, Lundin Mining is 1.31 times more volatile than Dalata Hotel Group. It trades about 0.0 of its total potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.03 per unit of volatility. If you would invest 35,376 in Dalata Hotel Group on September 2, 2024 and sell it today you would earn a total of 2,124 from holding Dalata Hotel Group or generate 6.0% 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. Dalata Hotel Group
Performance |
| Timeline |
| Lundin Mining Corp |
| Dalata Hotel Group |
Lundin Mining and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Dalata Hotel
The main advantage of trading using opposite Lundin Mining and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel'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 |
| Dalata Hotel vs. Odfjell Drilling | Dalata Hotel vs. Sabien Technology Group | Dalata Hotel vs. Eastman Chemical Co | Dalata Hotel vs. Vitec Software 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |