Correlation Between Intermap Technologies and Lundin Gold

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

By analyzing existing cross correlation between Intermap Technologies Corp and Lundin Gold, you can compare the effects of market volatilities on Intermap Technologies and Lundin Gold 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 Intermap Technologies with a short position of Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Lundin Gold.

Diversification Opportunities for Intermap Technologies and Lundin Gold

-0.43

Correlation Coefficient

Intermap Technologies  Lundin Gold

Very good diversification

The 3 months correlation between Intermap and Lundin is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold and Intermap Technologies 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 Intermap Technologies Corp are associated (or correlated) with Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and Lundin Gold go up and down completely randomly.

Pair Corralation between Intermap Technologies and Lundin Gold

Assuming the 90 days trading horizon Intermap Technologies Corp is expected to under-perform the Lundin Gold. In addition to that, Intermap Technologies is 1.94 times more volatile than Lundin Gold. It trades about -0.06 of its total potential returns per unit of risk. Lundin Gold is currently generating about 0.21 per unit of volatility. If you would invest  3,143  in Lundin Gold on December 22, 2024 and sell it today you would earn a total of  1,217  from holding Lundin Gold or generate 38.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intermap Technologies Corp  vs.  Lundin Gold

Intermap Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intermap Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Lundin Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Gold are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Lundin Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intermap Technologies and Lundin Gold

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

The idea behind Intermap Technologies Corp and Lundin Gold 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 Global Correlations module to find global opportunities by holding instruments from different markets.