Correlation Between Maven Wireless and Lundin Mining

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Can any of the company-specific risk be diversified away by investing in both Maven Wireless 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 Maven Wireless and Lundin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Lundin Mining, you can compare the effects of market volatilities on Maven Wireless 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 Maven Wireless with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Lundin Mining.

Diversification Opportunities for Maven Wireless and Lundin Mining

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between Maven and Lundin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Lundin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining and Maven Wireless 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 Maven Wireless Sweden 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 Maven Wireless i.e., Maven Wireless and Lundin Mining go up and down completely randomly.

Pair Corralation between Maven Wireless and Lundin Mining

Assuming the 90 days trading horizon Maven Wireless Sweden is expected to under-perform the Lundin Mining. In addition to that, Maven Wireless is 1.19 times more volatile than Lundin Mining. It trades about -0.07 of its total potential returns per unit of risk. Lundin Mining is currently generating about 0.09 per unit of volatility. If you would invest  9,368  in Lundin Mining on September 3, 2024 and sell it today you would earn a total of  1,292  from holding Lundin Mining or generate 13.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Maven Wireless Sweden  vs.  Lundin Mining

 Performance 
       Timeline  
Maven Wireless Sweden 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Mining are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Lundin Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Maven Wireless and Lundin Mining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Maven Wireless and Lundin Mining

The main advantage of trading using opposite Maven Wireless and Lundin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless 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.
The idea behind Maven Wireless Sweden and Lundin Mining 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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