Correlation Between Lundin Mining and Team Internet

Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Team Internet 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 Team Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lundin Mining Corp and Team Internet Group, you can compare the effects of market volatilities on Lundin Mining and Team Internet 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 Team Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Team Internet.

Diversification Opportunities for Lundin Mining and Team Internet

0.1

Correlation Coefficient

Lundin Mining  Team Internet

Average diversification

The 3 months correlation between Lundin and Team is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Team Internet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Team Internet Group 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 Corp are associated (or correlated) with Team Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Team Internet Group has no effect on the direction of Lundin Mining i.e., Lundin Mining and Team Internet go up and down completely randomly.

Pair Corralation between Lundin Mining and Team Internet

Assuming the 90 days trading horizon Lundin Mining Corp is expected to under-perform the Team Internet. But the stock apears to be less risky and, when comparing its historical volatility, Lundin Mining Corp is 3.4 times less risky than Team Internet. The stock trades about -0.06 of its potential returns per unit of risk. The Team Internet Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  9,340  in Team Internet Group on October 25, 2024 and sell it today you would earn a total of  1,180  from holding Team Internet Group or generate 12.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lundin Mining Corp  vs.  Team Internet Group

Lundin Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lundin Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Team Internet Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Team Internet Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Lundin Mining and Team Internet

The main advantage of trading using opposite Lundin Mining and Team Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Team Internet 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 Team Internet will offset losses from the drop in Team Internet's long position.

The idea behind Lundin Mining Corp and Team Internet Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.