Correlation Between Lundin Energy and New York
Can any of the company-specific risk be diversified away by investing in both Lundin Energy and New York 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 Energy and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Energy AB and The New York, you can compare the effects of market volatilities on Lundin Energy and New York 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 Energy with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Energy and New York.
Diversification Opportunities for Lundin Energy and New York
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lundin and New is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Energy AB and The New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York and Lundin Energy 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 Energy AB are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York has no effect on the direction of Lundin Energy i.e., Lundin Energy and New York go up and down completely randomly.
Pair Corralation between Lundin Energy and New York
Assuming the 90 days horizon Lundin Energy AB is expected to under-perform the New York. But the stock apears to be less risky and, when comparing its historical volatility, Lundin Energy AB is 1.12 times less risky than New York. The stock trades about -0.09 of its potential returns per unit of risk. The The New York is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,120 in The New York on August 29, 2024 and sell it today you would earn a total of 106.00 from holding The New York or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Energy AB vs. The New York
Performance |
| Timeline |
| Lundin Energy AB |
| New York |
Lundin Energy and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Energy and New York
The main advantage of trading using opposite Lundin Energy and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Energy position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Lundin Energy vs. SBA Communications Corp | Lundin Energy vs. STRAYER EDUCATION | Lundin Energy vs. Perdoceo Education | Lundin Energy vs. Consolidated Communications Holdings |
| New York vs. MAGNUM MINING EXP | New York vs. SBM OFFSHORE | New York vs. MCEWEN MINING INC | New York vs. RYU Apparel |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |