Correlation Between Lundin Mining and Ivanhoe Mines
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Ivanhoe Mines 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 Ivanhoe Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Ivanhoe Mines, you can compare the effects of market volatilities on Lundin Mining and Ivanhoe Mines 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 Ivanhoe Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Ivanhoe Mines.
Diversification Opportunities for Lundin Mining and Ivanhoe Mines
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lundin and Ivanhoe is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Ivanhoe Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Mines 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 Ivanhoe Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Mines has no effect on the direction of Lundin Mining i.e., Lundin Mining and Ivanhoe Mines go up and down completely randomly.
Pair Corralation between Lundin Mining and Ivanhoe Mines
Assuming the 90 days trading horizon Lundin Mining is expected to generate 0.86 times more return on investment than Ivanhoe Mines. However, Lundin Mining is 1.16 times less risky than Ivanhoe Mines. It trades about 0.02 of its potential returns per unit of risk. Ivanhoe Mines is currently generating about 0.0 per unit of risk. If you would invest 1,412 in Lundin Mining on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Lundin Mining or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining vs. Ivanhoe Mines
Performance |
| Timeline |
| Lundin Mining |
| Ivanhoe Mines |
Lundin Mining and Ivanhoe Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Ivanhoe Mines
The main advantage of trading using opposite Lundin Mining and Ivanhoe Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Ivanhoe Mines 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 Ivanhoe Mines will offset losses from the drop in Ivanhoe Mines' long position.| Lundin Mining vs. HudBay Minerals | Lundin Mining vs. First Quantum Minerals | Lundin Mining vs. Ivanhoe Mines | Lundin Mining vs. Capstone Mining Corp |
| Ivanhoe Mines vs. Lundin Mining | Ivanhoe Mines vs. First Quantum Minerals | Ivanhoe Mines vs. HudBay Minerals | Ivanhoe Mines vs. Eldorado Gold Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |