Correlation Between Lundin Mining and Copperbank Resources
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Copperbank Resources 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 Copperbank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Copperbank Resources Corp, you can compare the effects of market volatilities on Lundin Mining and Copperbank Resources 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 Copperbank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Copperbank Resources.
Diversification Opportunities for Lundin Mining and Copperbank Resources
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lundin and Copperbank is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp 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 Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Lundin Mining i.e., Lundin Mining and Copperbank Resources go up and down completely randomly.
Pair Corralation between Lundin Mining and Copperbank Resources
If you would invest 712.00 in Lundin Mining on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Lundin Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Lundin Mining vs. Copperbank Resources Corp
Performance |
| Timeline |
| Lundin Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Copperbank Resources Corp |
Lundin Mining and Copperbank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Copperbank Resources
The main advantage of trading using opposite Lundin Mining and Copperbank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Copperbank Resources 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 Copperbank Resources will offset losses from the drop in Copperbank Resources' long position.| Lundin Mining vs. Capstone Copper Corp | Lundin Mining vs. Hudbay Minerals | Lundin Mining vs. Copper Mountain Mining | Lundin Mining vs. Taseko Mines |
| Copperbank Resources vs. Bell Copper | Copperbank Resources vs. Copper Fox Metals | Copperbank Resources vs. First Quantum Minerals | Copperbank Resources vs. Southern Copper |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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