Correlation Between Lundin Energy and STORE Capital
Can any of the company-specific risk be diversified away by investing in both Lundin Energy and STORE Capital 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 Energy and STORE Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Energy AB and STORE Capital Corp, you can compare the effects of market volatilities on Lundin Energy and STORE Capital 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 Energy with a short position of STORE Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Energy and STORE Capital.
Diversification Opportunities for Lundin Energy and STORE Capital
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and STORE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Energy AB and STORE Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE Capital Corp and Lundin Energy 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 Energy AB are associated (or correlated) with STORE Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE Capital Corp has no effect on the direction of Lundin Energy i.e., Lundin Energy and STORE Capital go up and down completely randomly.
Pair Corralation between Lundin Energy and STORE Capital
If you would invest 3,221 in STORE Capital Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding STORE Capital Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lundin Energy AB vs. STORE Capital Corp
Performance |
| Timeline |
| Lundin Energy AB |
| STORE Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lundin Energy and STORE Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Energy and STORE Capital
The main advantage of trading using opposite Lundin Energy and STORE Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Energy position performs unexpectedly, STORE Capital 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 STORE Capital will offset losses from the drop in STORE Capital's long position.| Lundin Energy vs. Renew Energy Global | Lundin Energy vs. Energy Vault Holdings | Lundin Energy vs. Fluence Energy | Lundin Energy vs. Advent Technologies Holdings |
| STORE Capital vs. Cheniere Energy Partners | STORE Capital vs. Vistra Energy Corp | STORE Capital vs. Highway Holdings Limited | STORE Capital vs. Perseus Mining Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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