Correlation Between Lundin Mining and Bell Copper
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Bell Copper 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 Bell Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Bell Copper, you can compare the effects of market volatilities on Lundin Mining and Bell Copper 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 Bell Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Bell Copper.
Diversification Opportunities for Lundin Mining and Bell Copper
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and Bell is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Bell Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Copper 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 Bell Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Copper has no effect on the direction of Lundin Mining i.e., Lundin Mining and Bell Copper go up and down completely randomly.
Pair Corralation between Lundin Mining and Bell Copper
If you would invest 2.78 in Bell Copper on August 25, 2024 and sell it today you would earn a total of 0.42 from holding Bell Copper or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Lundin Mining vs. Bell Copper
Performance |
| Timeline |
| Lundin Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bell Copper |
Lundin Mining and Bell Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Bell Copper
The main advantage of trading using opposite Lundin Mining and Bell Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Bell Copper 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 Bell Copper will offset losses from the drop in Bell Copper's long position.| Lundin Mining vs. Capstone Copper Corp | Lundin Mining vs. Hudbay Minerals | Lundin Mining vs. Copper Mountain Mining | Lundin Mining vs. Taseko Mines |
| Bell Copper vs. Ascendant Resources | Bell Copper vs. Cantex Mine Development | Bell Copper vs. Amarc Resources | Bell Copper vs. Sterling Metals 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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