Correlation Between Lundin Mining and Eco Animal
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Eco Animal 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 Eco Animal 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 Eco Animal Health, you can compare the effects of market volatilities on Lundin Mining and Eco Animal 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 Eco Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Eco Animal.
Diversification Opportunities for Lundin Mining and Eco Animal
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lundin and Eco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Eco Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco Animal Health 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 Eco Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco Animal Health has no effect on the direction of Lundin Mining i.e., Lundin Mining and Eco Animal go up and down completely randomly.
Pair Corralation between Lundin Mining and Eco Animal
Assuming the 90 days trading horizon Lundin Mining Corp is expected to under-perform the Eco Animal. But the stock apears to be less risky and, when comparing its historical volatility, Lundin Mining Corp is 1.15 times less risky than Eco Animal. The stock trades about -0.08 of its potential returns per unit of risk. The Eco Animal Health is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,750 in Eco Animal Health on October 7, 2024 and sell it today you would earn a total of 350.00 from holding Eco Animal Health or generate 5.19% 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. Eco Animal Health
Performance |
| Timeline |
| Lundin Mining Corp |
| Eco Animal Health |
Lundin Mining and Eco Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Eco Animal
The main advantage of trading using opposite Lundin Mining and Eco Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Eco Animal 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 Eco Animal will offset losses from the drop in Eco Animal's long position.| Lundin Mining vs. First Class Metals | Lundin Mining vs. Empire Metals Limited | Lundin Mining vs. European Metals Holdings | Lundin Mining vs. Take Two Interactive Software |
| Eco Animal vs. Cars Inc | Eco Animal vs. Europa Metals | Eco Animal vs. Metro Bank PLC | Eco Animal vs. Zurich Insurance 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |