Correlation Between Bell Copper and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Bell Copper and Lundin 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 Bell Copper and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Copper and Lundin Mining, you can compare the effects of market volatilities on Bell Copper and Lundin 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 Bell Copper with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Copper and Lundin Mining.
Diversification Opportunities for Bell Copper and Lundin Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bell and Lundin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bell Copper and Lundin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining and Bell Copper 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 Bell Copper are associated (or correlated) with Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining has no effect on the direction of Bell Copper i.e., Bell Copper and Lundin Mining go up and down completely randomly.
Pair Corralation between Bell Copper and Lundin Mining
If you would invest 712.00 in Lundin Mining on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Lundin Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bell Copper vs. Lundin Mining
Performance |
| Timeline |
| Bell Copper |
| Lundin Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bell Copper and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Copper and Lundin Mining
The main advantage of trading using opposite Bell Copper and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Copper position performs unexpectedly, Lundin 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 Lundin Mining will offset losses from the drop in Lundin Mining's long position.| Bell Copper vs. Arizona Sonoran Copper | Bell Copper vs. Dor Copper Mining | Bell Copper vs. CopperCorp Resources | Bell Copper vs. Copper Fox Metals |
| Lundin Mining vs. Capstone Copper Corp | Lundin Mining vs. Hudbay Minerals | Lundin Mining vs. Copper Mountain Mining | Lundin Mining vs. Taseko Mines |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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