Correlation Between Europa Metals and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Europa Metals 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 Europa Metals and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europa Metals and Lundin Mining Corp, you can compare the effects of market volatilities on Europa Metals 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 Europa Metals with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europa Metals and Lundin Mining.
Diversification Opportunities for Europa Metals and Lundin Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Europa and Lundin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Europa Metals 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 Europa Metals 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 Europa Metals 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 Europa Metals i.e., Europa Metals and Lundin Mining go up and down completely randomly.
Pair Corralation between Europa Metals and Lundin Mining
If you would invest 9,373 in Lundin Mining Corp on October 18, 2024 and sell it today you would earn a total of 237.00 from holding Lundin Mining Corp or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europa Metals vs. Lundin Mining Corp
Performance |
| Timeline |
| Europa Metals |
| Lundin Mining Corp |
Europa Metals and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europa Metals and Lundin Mining
The main advantage of trading using opposite Europa Metals and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europa Metals 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.| Europa Metals vs. Zurich Insurance Group | Europa Metals vs. Young Cos Brewery | Europa Metals vs. Taiwan Semiconductor Manufacturing | Europa Metals vs. Monster Beverage Corp |
| Lundin Mining vs. Air Products Chemicals | Lundin Mining vs. Broadridge Financial Solutions | Lundin Mining vs. Golden Metal Resources | Lundin Mining vs. Europa Metals |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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