Correlation Between Orrn Energy and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Orrn Energy and Lundin Mining 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 Orrn Energy and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orrn Energy AB and Lundin Mining, you can compare the effects of market volatilities on Orrn Energy and Lundin Mining 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 Orrn Energy with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orrn Energy and Lundin Mining.
Diversification Opportunities for Orrn Energy and Lundin Mining
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orrn and Lundin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Orrn Energy AB and Lundin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining and Orrn 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 Orrn Energy AB are associated (or correlated) with Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining has no effect on the direction of Orrn Energy i.e., Orrn Energy and Lundin Mining go up and down completely randomly.
Pair Corralation between Orrn Energy and Lundin Mining
If you would invest 10,660 in Lundin Mining on August 25, 2024 and sell it today you would earn a total of 430.00 from holding Lundin Mining or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Orrn Energy AB vs. Lundin Mining
Performance |
| Timeline |
| Orrn Energy AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lundin Mining |
Orrn Energy and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orrn Energy and Lundin Mining
The main advantage of trading using opposite Orrn Energy and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orrn Energy position performs unexpectedly, Lundin Mining 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 Lundin Mining will offset losses from the drop in Lundin Mining's long position.| Orrn Energy vs. Samhllsbyggnadsbolaget i Norden | Orrn Energy vs. Sinch AB | Orrn Energy vs. Hexatronic Group AB | Orrn Energy vs. SSAB AB |
| Lundin Mining vs. Boliden AB | Lundin Mining vs. SSAB AB | Lundin Mining vs. AB SKF | Lundin Mining vs. Sandvik AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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