Correlation Between Lundin Mining and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Thor Mining 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 Thor Mining 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 Thor Mining PLC, you can compare the effects of market volatilities on Lundin Mining and Thor Mining 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 Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Thor Mining.
Diversification Opportunities for Lundin Mining and Thor Mining
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and Thor is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Thor Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Mining 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 Thor Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Mining PLC has no effect on the direction of Lundin Mining i.e., Lundin Mining and Thor Mining go up and down completely randomly.
Pair Corralation between Lundin Mining and Thor Mining
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 0.56 times more return on investment than Thor Mining. However, Lundin Mining Corp is 1.77 times less risky than Thor Mining. It trades about 0.05 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.05 per unit of risk. If you would invest 7,658 in Lundin Mining Corp on August 27, 2024 and sell it today you would earn a total of 3,462 from holding Lundin Mining Corp or generate 45.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Lundin Mining Corp vs. Thor Mining PLC
Performance |
| Timeline |
| Lundin Mining Corp |
| Thor Mining PLC |
Lundin Mining and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Thor Mining
The main advantage of trading using opposite Lundin Mining and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Thor Mining 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 Thor Mining will offset losses from the drop in Thor Mining'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 |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |