Correlation Between Blackstone Loan and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan 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 Blackstone Loan and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Loan Financing and Lundin Mining Corp, you can compare the effects of market volatilities on Blackstone Loan 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 Blackstone Loan with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Lundin Mining.
Diversification Opportunities for Blackstone Loan and Lundin Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackstone and Lundin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Lundin Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining Corp and Blackstone Loan 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 Blackstone Loan Financing 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 Corp has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Lundin Mining go up and down completely randomly.
Pair Corralation between Blackstone Loan and Lundin Mining
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.89 times more return on investment than Lundin Mining. However, Blackstone Loan Financing is 1.13 times less risky than Lundin Mining. It trades about 0.29 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about 0.06 per unit of risk. If you would invest 5,750 in Blackstone Loan Financing on September 2, 2024 and sell it today you would earn a total of 750.00 from holding Blackstone Loan Financing or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Lundin Mining Corp
Performance |
| Timeline |
| Blackstone Loan Financing |
| Lundin Mining Corp |
Blackstone Loan and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Lundin Mining
The main advantage of trading using opposite Blackstone Loan and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan 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.| Blackstone Loan vs. Fulcrum Metals PLC | Blackstone Loan vs. Alliance Data Systems | Blackstone Loan vs. European Metals Holdings | Blackstone Loan vs. Empire Metals Limited |
| Lundin Mining vs. Supermarket Income REIT | Lundin Mining vs. Ecclesiastical Insurance Office | Lundin Mining vs. Batm Advanced Communications | Lundin Mining vs. Team Internet 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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