Correlation Between Lundin Gold and M Split
Can any of the company-specific risk be diversified away by investing in both Lundin Gold and M Split 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 Gold and M Split into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Gold and M Split Corp, you can compare the effects of market volatilities on Lundin Gold and M Split 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 Gold with a short position of M Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and M Split.
Diversification Opportunities for Lundin Gold and M Split
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lundin and XMF-PB is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and M Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Split Corp and Lundin Gold 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 Gold are associated (or correlated) with M Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Split Corp has no effect on the direction of Lundin Gold i.e., Lundin Gold and M Split go up and down completely randomly.
Pair Corralation between Lundin Gold and M Split
Assuming the 90 days trading horizon Lundin Gold is expected to under-perform the M Split. In addition to that, Lundin Gold is 1.97 times more volatile than M Split Corp. It trades about -0.2 of its total potential returns per unit of risk. M Split Corp is currently generating about 0.04 per unit of volatility. If you would invest 517.00 in M Split Corp on October 5, 2024 and sell it today you would earn a total of 4.00 from holding M Split Corp or generate 0.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lundin Gold vs. M Split Corp
Performance |
Timeline |
Lundin Gold |
M Split Corp |
Lundin Gold and M Split Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lundin Gold and M Split
The main advantage of trading using opposite Lundin Gold and M Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold position performs unexpectedly, M Split 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 M Split will offset losses from the drop in M Split's long position.Lundin Gold vs. Osisko Gold Ro | Lundin Gold vs. Dundee Precious Metals | Lundin Gold vs. SSR Mining | Lundin Gold vs. Sandstorm Gold Ltd |
M Split vs. Mako Mining Corp | M Split vs. Homerun Resources | M Split vs. Information Services | M Split vs. XXIX Metal Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |