Correlation Between Lundin Mining and Peab AB
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Peab 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 Peab 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 Peab AB, you can compare the effects of market volatilities on Lundin Mining and Peab 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Peab AB.
Diversification Opportunities for Lundin Mining and Peab AB
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lundin and Peab is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Lundin Mining i.e., Lundin Mining and Peab AB go up and down completely randomly.
Pair Corralation between Lundin Mining and Peab AB
Assuming the 90 days trading horizon Lundin Mining is expected to under-perform the Peab AB. In addition to that, Lundin Mining is 1.83 times more volatile than Peab AB. It trades about -0.04 of its total potential returns per unit of risk. Peab AB is currently generating about 0.0 per unit of volatility. If you would invest 8,055 in Peab AB on August 30, 2024 and sell it today you would lose (25.00) from holding Peab AB or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining vs. Peab AB
Performance |
| Timeline |
| Lundin Mining |
| Peab AB |
Lundin Mining and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Peab AB
The main advantage of trading using opposite Lundin Mining and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Peab 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 Peab AB will offset losses from the drop in Peab AB's long position.| Lundin Mining vs. Boliden AB | Lundin Mining vs. Lundin Gold | Lundin Mining vs. SSAB AB | Lundin Mining vs. AB SKF |
| Peab AB vs. AVTECH Sweden AB | Peab AB vs. OptiCept Technologies AB | Peab AB vs. Lime Technologies AB | Peab AB vs. Maven Wireless Sweden |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |