Correlation Between Lundin Mining and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Mulberry Group 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 Mulberry Group 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 Mulberry Group PLC, you can compare the effects of market volatilities on Lundin Mining and Mulberry Group 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 Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Mulberry Group.
Diversification Opportunities for Lundin Mining and Mulberry Group
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lundin and Mulberry is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group 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 Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of Lundin Mining i.e., Lundin Mining and Mulberry Group go up and down completely randomly.
Pair Corralation between Lundin Mining and Mulberry Group
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 0.71 times more return on investment than Mulberry Group. However, Lundin Mining Corp is 1.41 times less risky than Mulberry Group. It trades about 0.04 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about -0.05 per unit of risk. If you would invest 7,998 in Lundin Mining Corp on August 30, 2024 and sell it today you would earn a total of 2,712 from holding Lundin Mining Corp or generate 33.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.98% |
| Values | Daily Returns |
Lundin Mining Corp vs. Mulberry Group PLC
Performance |
| Timeline |
| Lundin Mining Corp |
| Mulberry Group PLC |
Lundin Mining and Mulberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Mulberry Group
The main advantage of trading using opposite Lundin Mining and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Mulberry Group 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.| Lundin Mining vs. Lendinvest PLC | Lundin Mining vs. Neometals | Lundin Mining vs. Albion Technology General | Lundin Mining vs. Jupiter Fund Management |
| Mulberry Group vs. Pfeiffer Vacuum Technology | Mulberry Group vs. Batm Advanced Communications | Mulberry Group vs. Sabien Technology Group | Mulberry Group vs. AIM ImmunoTech |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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