Correlation Between Inventus Mining and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Inventus 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 Inventus 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 Inventus Mining Corp and Lundin Mining, you can compare the effects of market volatilities on Inventus 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 Inventus Mining with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventus Mining and Lundin Mining.
Diversification Opportunities for Inventus Mining and Lundin Mining
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inventus and Lundin is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Inventus Mining Corp and Lundin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining and Inventus 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 Inventus Mining Corp 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 has no effect on the direction of Inventus Mining i.e., Inventus Mining and Lundin Mining go up and down completely randomly.
Pair Corralation between Inventus Mining and Lundin Mining
Assuming the 90 days horizon Inventus Mining Corp is expected to generate 2.91 times more return on investment than Lundin Mining. However, Inventus Mining is 2.91 times more volatile than Lundin Mining. It trades about 0.11 of its potential returns per unit of risk. Lundin Mining is currently generating about -0.17 per unit of risk. If you would invest 8.00 in Inventus Mining Corp on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Inventus Mining Corp or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inventus Mining Corp vs. Lundin Mining
Performance |
| Timeline |
| Inventus Mining Corp |
| Lundin Mining |
Inventus Mining and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inventus Mining and Lundin Mining
The main advantage of trading using opposite Inventus Mining and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventus 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.| Inventus Mining vs. Gunpoint Exploration | Inventus Mining vs. CANEX Metals | Inventus Mining vs. Hawkeye Gold and | Inventus Mining vs. Desert Gold Ventures |
| Lundin Mining vs. HudBay Minerals | Lundin Mining vs. First Quantum Minerals | Lundin Mining vs. Ivanhoe Mines | Lundin Mining vs. Capstone Mining 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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