Correlation Between Triad Group and Lundin Mining
Can any of the company-specific risk be diversified away by investing in both Triad Group 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 Triad Group and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Lundin Mining Corp, you can compare the effects of market volatilities on Triad Group 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 Triad Group with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Lundin Mining.
Diversification Opportunities for Triad Group and Lundin Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Triad and Lundin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and Lundin Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining Corp and Triad Group 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 Triad Group PLC 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 Corp has no effect on the direction of Triad Group i.e., Triad Group and Lundin Mining go up and down completely randomly.
Pair Corralation between Triad Group and Lundin Mining
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 0.95 times more return on investment than Lundin Mining. However, Triad Group PLC is 1.06 times less risky than Lundin Mining. It trades about 0.12 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about 0.04 per unit of risk. If you would invest 7,626 in Triad Group PLC on September 28, 2024 and sell it today you would earn a total of 19,874 from holding Triad Group PLC or generate 260.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Triad Group PLC vs. Lundin Mining Corp
Performance |
| Timeline |
| Triad Group PLC |
| Lundin Mining Corp |
Triad Group and Lundin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Lundin Mining
The main advantage of trading using opposite Triad Group and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group 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.| Triad Group vs. Chocoladefabriken Lindt Spruengli | Triad Group vs. Rockwood Realisation PLC | Triad Group vs. Toyota Motor Corp | Triad Group vs. Johnson Matthey PLC |
| Lundin Mining vs. Uniper SE | Lundin Mining vs. Mulberry Group PLC | Lundin Mining vs. London Security Plc | Lundin Mining vs. Triad Group PLC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |