Correlation Between Lundin Mining and Audientes
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Audientes 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 Audientes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Audientes AS, you can compare the effects of market volatilities on Lundin Mining and Audientes 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 Audientes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Audientes.
Diversification Opportunities for Lundin Mining and Audientes
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lundin and Audientes is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Audientes AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Audientes AS 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 Audientes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Audientes AS has no effect on the direction of Lundin Mining i.e., Lundin Mining and Audientes go up and down completely randomly.
Pair Corralation between Lundin Mining and Audientes
Assuming the 90 days trading horizon Lundin Mining is expected to generate 0.2 times more return on investment than Audientes. However, Lundin Mining is 4.89 times less risky than Audientes. It trades about 0.07 of its potential returns per unit of risk. Audientes AS is currently generating about 0.01 per unit of risk. If you would invest 7,308 in Lundin Mining on September 3, 2024 and sell it today you would earn a total of 3,352 from holding Lundin Mining or generate 45.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lundin Mining vs. Audientes AS
Performance |
| Timeline |
| Lundin Mining |
| Audientes AS |
Lundin Mining and Audientes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Audientes
The main advantage of trading using opposite Lundin Mining and Audientes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Audientes 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 Audientes will offset losses from the drop in Audientes' long position.| Lundin Mining vs. Boliden AB | Lundin Mining vs. Lundin Gold | Lundin Mining vs. SSAB AB | Lundin Mining vs. AB SKF |
| Audientes vs. Corline Biomedical AB | Audientes vs. Svenska Handelsbanken AB | Audientes vs. NetJobs Group AB | Audientes vs. Lundin Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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