Correlation Between Lundin Mining and Beowulf Mining
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By analyzing existing cross correlation between Lundin Mining and Beowulf Mining PLC, you can compare the effects of market volatilities on Lundin Mining and Beowulf 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 Lundin Mining with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Beowulf Mining.
Diversification Opportunities for Lundin Mining and Beowulf Mining
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lundin and Beowulf is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC 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 Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of Lundin Mining i.e., Lundin Mining and Beowulf Mining go up and down completely randomly.
Pair Corralation between Lundin Mining and Beowulf Mining
Assuming the 90 days trading horizon Lundin Mining is expected to generate 11.35 times less return on investment than Beowulf Mining. But when comparing it to its historical volatility, Lundin Mining is 18.01 times less risky than Beowulf Mining. It trades about 0.06 of its potential returns per unit of risk. Beowulf Mining PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Beowulf Mining PLC on August 29, 2024 and sell it today you would earn a total of 178.00 from holding Beowulf Mining PLC or generate 335.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining vs. Beowulf Mining PLC
Performance |
| Timeline |
| Lundin Mining |
| Beowulf Mining PLC |
Lundin Mining and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Beowulf Mining
The main advantage of trading using opposite Lundin Mining and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Beowulf 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Lundin Mining vs. Boliden AB | Lundin Mining vs. Lundin Gold | Lundin Mining vs. SSAB AB | Lundin Mining vs. AB SKF |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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