Correlation Between Lundin Gold and First Quantum
Can any of the company-specific risk be diversified away by investing in both Lundin Gold and First Quantum 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 First Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Gold and First Quantum Minerals, you can compare the effects of market volatilities on Lundin Gold and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and First Quantum.
Diversification Opportunities for Lundin Gold and First Quantum
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lundin and First is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of Lundin Gold i.e., Lundin Gold and First Quantum go up and down completely randomly.
Pair Corralation between Lundin Gold and First Quantum
Assuming the 90 days trading horizon Lundin Gold is expected to generate 1.44 times more return on investment than First Quantum. However, Lundin Gold is 1.44 times more volatile than First Quantum Minerals. It trades about 0.19 of its potential returns per unit of risk. First Quantum Minerals is currently generating about 0.18 per unit of risk. If you would invest 7,808 in Lundin Gold on August 21, 2025 and sell it today you would earn a total of 3,634 from holding Lundin Gold or generate 46.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Lundin Gold vs. First Quantum Minerals
Performance |
| Timeline |
| Lundin Gold |
| First Quantum Minerals |
Lundin Gold and First Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Gold and First Quantum
The main advantage of trading using opposite Lundin Gold and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.| Lundin Gold vs. Alamos Gold | Lundin Gold vs. First Quantum Minerals | Lundin Gold vs. Lundin Mining | Lundin Gold vs. Endeavour Mining Corp |
| First Quantum vs. Lundin Mining | First Quantum vs. Lundin Gold | First Quantum vs. Ivanhoe Mines | First Quantum vs. Alamos Gold |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |