Correlation Between SPACE and Lundin Gold
Can any of the company-specific risk be diversified away by investing in both SPACE and Lundin Gold 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 SPACE and Lundin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPACE and Lundin Gold, you can compare the effects of market volatilities on SPACE and Lundin Gold 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 SPACE with a short position of Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPACE and Lundin Gold.
Diversification Opportunities for SPACE and Lundin Gold
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPACE and Lundin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold and SPACE 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 SPACE are associated (or correlated) with Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of SPACE i.e., SPACE and Lundin Gold go up and down completely randomly.
Pair Corralation between SPACE and Lundin Gold
Assuming the 90 days horizon SPACE is expected to generate 73.26 times more return on investment than Lundin Gold. However, SPACE is 73.26 times more volatile than Lundin Gold. It trades about 0.18 of its potential returns per unit of risk. Lundin Gold is currently generating about 0.09 per unit of risk. If you would invest 0.00 in SPACE on September 4, 2024 and sell it today you would earn a total of 59.00 from holding SPACE or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.82% |
| Values | Daily Returns |
SPACE vs. Lundin Gold
Performance |
| Timeline |
| SPACE |
| Lundin Gold |
SPACE and Lundin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPACE and Lundin Gold
The main advantage of trading using opposite SPACE and Lundin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPACE position performs unexpectedly, Lundin Gold 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 Gold will offset losses from the drop in Lundin Gold's long position.The idea behind SPACE and Lundin Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lundin Gold vs. Sirios Resources | Lundin Gold vs. Q2 Metals Corp | Lundin Gold vs. Tectonic Metals | Lundin Gold vs. Angus Gold |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |