Correlation Between Lundin Energy and Cion Investment
Can any of the company-specific risk be diversified away by investing in both Lundin Energy and Cion 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 Energy and Cion Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Energy AB and Cion Investment Corp, you can compare the effects of market volatilities on Lundin Energy and Cion 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 Energy with a short position of Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Energy and Cion Investment.
Diversification Opportunities for Lundin Energy and Cion Investment
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lundin and Cion is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Energy AB and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp and Lundin Energy 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 Energy AB are associated (or correlated) with Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Lundin Energy i.e., Lundin Energy and Cion Investment go up and down completely randomly.
Pair Corralation between Lundin Energy and Cion Investment
If you would invest 43.00 in Lundin Energy AB on July 19, 2025 and sell it today you would earn a total of 0.00 from holding Lundin Energy AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Energy AB vs. Cion Investment Corp
Performance |
| Timeline |
| Lundin Energy AB |
| Cion Investment Corp |
Lundin Energy and Cion Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Energy and Cion Investment
The main advantage of trading using opposite Lundin Energy and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Energy position performs unexpectedly, Cion 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 Cion Investment will offset losses from the drop in Cion Investment's long position.| Lundin Energy vs. Advent Technologies Holdings | Lundin Energy vs. Niko Resources | Lundin Energy vs. Energy Revenue Amer | Lundin Energy vs. Prodways Group SA |
| Cion Investment vs. Acadian Asset Management | Cion Investment vs. Investcorp Credit Management | Cion Investment vs. FS Credit Opportunities | Cion Investment vs. Munivest Fund |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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