Correlation Between Griffin Mining and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Griffin Mining 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 Griffin Mining and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Lundin Mining Corp, you can compare the effects of market volatilities on Griffin Mining 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 Griffin Mining with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Lundin Mining.
Diversification Opportunities for Griffin Mining and Lundin Mining
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffin and Lundin is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining 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 Griffin 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 Griffin Mining 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 Griffin Mining i.e., Griffin Mining and Lundin Mining go up and down completely randomly.
Pair Corralation between Griffin Mining and Lundin Mining
Assuming the 90 days trading horizon Griffin Mining is expected to generate 0.83 times more return on investment than Lundin Mining. However, Griffin Mining is 1.21 times less risky than Lundin Mining. It trades about 0.08 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about 0.02 per unit of risk. If you would invest 9,810 in Griffin Mining on November 3, 2024 and sell it today you would earn a total of 4,990 from holding Griffin Mining or generate 50.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Lundin Mining Corp
Performance |
| Timeline |
| Griffin Mining |
| Lundin Mining Corp |
Griffin Mining and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Lundin Mining
The main advantage of trading using opposite Griffin Mining and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining 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.| Griffin Mining vs. Central Asia Metals | Griffin Mining vs. Jacquet Metal Service | Griffin Mining vs. First Class Metals | Griffin Mining vs. URU Metals |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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