Correlation Between Lundin Mining and Genovis AB
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Genovis AB 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 Genovis AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Genovis AB, you can compare the effects of market volatilities on Lundin Mining and Genovis AB 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 Genovis AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Genovis AB.
Diversification Opportunities for Lundin Mining and Genovis AB
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lundin and Genovis is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Genovis AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovis AB 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 Genovis AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovis AB has no effect on the direction of Lundin Mining i.e., Lundin Mining and Genovis AB go up and down completely randomly.
Pair Corralation between Lundin Mining and Genovis AB
Assuming the 90 days trading horizon Lundin Mining is expected to generate 7.02 times less return on investment than Genovis AB. But when comparing it to its historical volatility, Lundin Mining is 3.24 times less risky than Genovis AB. It trades about 0.07 of its potential returns per unit of risk. Genovis AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,175 in Genovis AB on September 1, 2024 and sell it today you would earn a total of 450.00 from holding Genovis AB or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining vs. Genovis AB
Performance |
| Timeline |
| Lundin Mining |
| Genovis AB |
Lundin Mining and Genovis AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Genovis AB
The main advantage of trading using opposite Lundin Mining and Genovis AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Genovis AB 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 Genovis AB will offset losses from the drop in Genovis AB's long position.| Lundin Mining vs. Boliden AB | Lundin Mining vs. Lundin Gold | Lundin Mining vs. SSAB AB | Lundin Mining vs. AB SKF |
| Genovis AB vs. Skandinaviska Enskilda Banken | Genovis AB vs. Beowulf Mining PLC | Genovis AB vs. White Pearl Technology | Genovis AB vs. Nordic Asia Investment |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |