Correlation Between Lundin Mining and Three Valley
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Three Valley 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 Three Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Three Valley Copper, you can compare the effects of market volatilities on Lundin Mining and Three Valley 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 Three Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Three Valley.
Diversification Opportunities for Lundin Mining and Three Valley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lundin and Three is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Three Valley Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Three Valley 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 Three Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Three Valley Copper has no effect on the direction of Lundin Mining i.e., Lundin Mining and Three Valley go up and down completely randomly.
Pair Corralation between Lundin Mining and Three Valley
If you would invest 2.00 in Three Valley Copper on December 1, 2024 and sell it today you would lose (1.90) from holding Three Valley Copper or give up 95.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lundin Mining vs. Three Valley Copper
Performance |
| Timeline |
| Lundin Mining |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Three Valley Copper |
Lundin Mining and Three Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Three Valley
The main advantage of trading using opposite Lundin Mining and Three Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Three Valley 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 Three Valley will offset losses from the drop in Three Valley'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 |
| Three Valley vs. Qubec Nickel Corp | Three Valley vs. Paragon Technologies | Three Valley vs. PT Bumi Resources | Three Valley vs. Portman Ridge Finance |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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