Correlation Between Lundin Mining and Lowland Investment
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Lowland Investment 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 Lowland Investment 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 Lowland Investment Co, you can compare the effects of market volatilities on Lundin Mining and Lowland Investment 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 Lowland Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Lowland Investment.
Diversification Opportunities for Lundin Mining and Lowland Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lundin and Lowland is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp and Lowland Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowland Investment 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 Lowland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowland Investment has no effect on the direction of Lundin Mining i.e., Lundin Mining and Lowland Investment go up and down completely randomly.
Pair Corralation between Lundin Mining and Lowland Investment
Assuming the 90 days trading horizon Lundin Mining Corp is expected to under-perform the Lowland Investment. In addition to that, Lundin Mining is 3.1 times more volatile than Lowland Investment Co. It trades about -0.01 of its total potential returns per unit of risk. Lowland Investment Co is currently generating about 0.02 per unit of volatility. If you would invest 15,400 in Lowland Investment Co on September 10, 2025 and sell it today you would earn a total of 50.00 from holding Lowland Investment Co or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. Lowland Investment Co
Performance |
| Timeline |
| Lundin Mining Corp |
| Lowland Investment |
Lundin Mining and Lowland Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Lowland Investment
The main advantage of trading using opposite Lundin Mining and Lowland Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Lowland Investment 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 Lowland Investment will offset losses from the drop in Lowland Investment's long position.| Lundin Mining vs. Toyota Motor Corp | Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Samsung Electronics Co | Lundin Mining vs. Samsung Electronics Co |
| Lowland Investment vs. Vulcan Materials Co | Lowland Investment vs. Bell Food Group | Lowland Investment vs. Norwegian Air Shuttle | Lowland Investment vs. Porvair plc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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