Correlation Between Maven Wireless and Lundin Mining
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Maven Wireless Sweden vs. Lundin Mining
Performance |
Timeline |
Maven Wireless Sweden |
Lundin Mining |
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.Maven Wireless vs. Embracer Group AB | Maven Wireless vs. Samhllsbyggnadsbolaget i Norden | Maven Wireless vs. Evolution AB | Maven Wireless vs. Stillfront Group AB |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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