Correlation Between LUNDIN MINING and Strategic Education
Can any of the company-specific risk be diversified away by investing in both LUNDIN MINING and Strategic Education 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 Strategic Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LUNDIN MINING and Strategic Education, you can compare the effects of market volatilities on LUNDIN MINING and Strategic Education 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 Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUNDIN MINING and Strategic Education.
Diversification Opportunities for LUNDIN MINING and Strategic Education
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between LUNDIN and Strategic is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding LUNDIN MINING and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 are associated (or correlated) with Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of LUNDIN MINING i.e., LUNDIN MINING and Strategic Education go up and down completely randomly.
Pair Corralation between LUNDIN MINING and Strategic Education
Assuming the 90 days trading horizon LUNDIN MINING is expected to generate 1.21 times more return on investment than Strategic Education. However, LUNDIN MINING is 1.21 times more volatile than Strategic Education. It trades about 0.04 of its potential returns per unit of risk. Strategic Education is currently generating about 0.02 per unit of risk. If you would invest 567.00 in LUNDIN MINING on November 2, 2024 and sell it today you would earn a total of 216.00 from holding LUNDIN MINING or generate 38.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
LUNDIN MINING vs. Strategic Education
Performance |
| Timeline |
| LUNDIN MINING |
| Strategic Education |
LUNDIN MINING and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUNDIN MINING and Strategic Education
The main advantage of trading using opposite LUNDIN MINING and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUNDIN MINING position performs unexpectedly, Strategic Education 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 Strategic Education will offset losses from the drop in Strategic Education's long position.| LUNDIN MINING vs. China Communications Services | LUNDIN MINING vs. GALENA MINING LTD | LUNDIN MINING vs. GREENX METALS LTD | LUNDIN MINING vs. ADRIATIC METALS LS 013355 |
| Strategic Education vs. Perdoceo Education | Strategic Education vs. SCANSOURCE | Strategic Education vs. Adtalem Global Education | Strategic Education vs. betterU Education Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |