Correlation Between Lundin Gold and Elemental Royalties
Can any of the company-specific risk be diversified away by investing in both Lundin Gold and Elemental Royalties 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 Elemental Royalties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Gold and Elemental Royalties Corp, you can compare the effects of market volatilities on Lundin Gold and Elemental Royalties 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 Elemental Royalties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and Elemental Royalties.
Diversification Opportunities for Lundin Gold and Elemental Royalties
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lundin and Elemental is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and Elemental Royalties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elemental Royalties 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 Elemental Royalties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elemental Royalties Corp has no effect on the direction of Lundin Gold i.e., Lundin Gold and Elemental Royalties go up and down completely randomly.
Pair Corralation between Lundin Gold and Elemental Royalties
Assuming the 90 days trading horizon Lundin Gold is expected to generate 1.08 times more return on investment than Elemental Royalties. However, Lundin Gold is 1.08 times more volatile than Elemental Royalties Corp. It trades about 0.18 of its potential returns per unit of risk. Elemental Royalties Corp is currently generating about 0.01 per unit of risk. If you would invest 7,913 in Lundin Gold on August 14, 2025 and sell it today you would earn a total of 3,559 from holding Lundin Gold or generate 44.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Gold vs. Elemental Royalties Corp
Performance |
| Timeline |
| Lundin Gold |
| Elemental Royalties Corp |
Lundin Gold and Elemental Royalties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Gold and Elemental Royalties
The main advantage of trading using opposite Lundin Gold and Elemental Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold position performs unexpectedly, Elemental Royalties 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 Elemental Royalties will offset losses from the drop in Elemental Royalties' long position.| Lundin Gold vs. Alamos Gold | Lundin Gold vs. First Quantum Minerals | Lundin Gold vs. Lundin Mining | Lundin Gold vs. Endeavour Mining Corp |
| Elemental Royalties vs. First Majestic Silver | Elemental Royalties vs. Ivanhoe Energy | Elemental Royalties vs. Orezone Gold Corp | Elemental Royalties vs. Faraday Copper 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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