Correlation Between Lundin Mining and NetJobs Group
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and NetJobs Group 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 NetJobs Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and NetJobs Group AB, you can compare the effects of market volatilities on Lundin Mining and NetJobs Group 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 NetJobs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and NetJobs Group.
Diversification Opportunities for Lundin Mining and NetJobs Group
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and NetJobs is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group 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 NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Lundin Mining i.e., Lundin Mining and NetJobs Group go up and down completely randomly.
Pair Corralation between Lundin Mining and NetJobs Group
Assuming the 90 days trading horizon Lundin Mining is expected to under-perform the NetJobs Group. But the stock apears to be less risky and, when comparing its historical volatility, Lundin Mining is 2.3 times less risky than NetJobs Group. The stock trades about -0.01 of its potential returns per unit of risk. The NetJobs Group AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 28.00 in NetJobs Group AB on September 3, 2024 and sell it today you would earn a total of 11.00 from holding NetJobs Group AB or generate 39.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining vs. NetJobs Group AB
Performance |
| Timeline |
| Lundin Mining |
| NetJobs Group AB |
Lundin Mining and NetJobs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and NetJobs Group
The main advantage of trading using opposite Lundin Mining and NetJobs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, NetJobs Group 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 NetJobs Group will offset losses from the drop in NetJobs Group's long position.| Lundin Mining vs. Boliden AB | Lundin Mining vs. Lundin Gold | Lundin Mining vs. SSAB AB | Lundin Mining vs. AB SKF |
| NetJobs Group vs. AB SKF | NetJobs Group vs. ASSA ABLOY AB | NetJobs Group vs. Atlas Copco AB | NetJobs Group vs. Boliden AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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