Correlation Between Lundin Mining and Science In
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Science In 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 Science In 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 Science in Sport, you can compare the effects of market volatilities on Lundin Mining and Science In 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 Science In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Science In.
Diversification Opportunities for Lundin Mining and Science In
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lundin and Science is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Science in Sport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science in Sport 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 Science In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science in Sport has no effect on the direction of Lundin Mining i.e., Lundin Mining and Science In go up and down completely randomly.
Pair Corralation between Lundin Mining and Science In
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 1.93 times more return on investment than Science In. However, Lundin Mining is 1.93 times more volatile than Science in Sport. It trades about 0.05 of its potential returns per unit of risk. Science in Sport is currently generating about 0.07 per unit of risk. If you would invest 10,323 in Lundin Mining Corp on August 28, 2024 and sell it today you would earn a total of 627.00 from holding Lundin Mining Corp or generate 6.07% 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. Science in Sport
Performance |
| Timeline |
| Lundin Mining Corp |
| Science in Sport |
Lundin Mining and Science In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Science In
The main advantage of trading using opposite Lundin Mining and Science In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Science In 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 Science In will offset losses from the drop in Science In's long position.| Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Hyundai Motor | Lundin Mining vs. Toyota Motor Corp |
| Science In vs. Walmart | Science In vs. BYD Co | Science In vs. Volkswagen AG Non Vtg | Science In vs. Deutsche Post AG |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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