Correlation Between Lundin Gold and Nippon Paint
Can any of the company-specific risk be diversified away by investing in both Lundin Gold and Nippon Paint 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 Nippon Paint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Gold and Nippon Paint Holdings, you can compare the effects of market volatilities on Lundin Gold and Nippon Paint 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 Nippon Paint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and Nippon Paint.
Diversification Opportunities for Lundin Gold and Nippon Paint
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lundin and Nippon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and Nippon Paint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Paint Holdings 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 Nippon Paint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Paint Holdings has no effect on the direction of Lundin Gold i.e., Lundin Gold and Nippon Paint go up and down completely randomly.
Pair Corralation between Lundin Gold and Nippon Paint
If you would invest 6,569 in Lundin Gold on October 7, 2025 and sell it today you would earn a total of 1,511 from holding Lundin Gold or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lundin Gold vs. Nippon Paint Holdings
Performance |
| Timeline |
| Lundin Gold |
| Nippon Paint Holdings |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Lundin Gold and Nippon Paint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Gold and Nippon Paint
The main advantage of trading using opposite Lundin Gold and Nippon Paint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold position performs unexpectedly, Nippon Paint 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 Nippon Paint will offset losses from the drop in Nippon Paint's long position.| Lundin Gold vs. Evolution Mining | Lundin Gold vs. Zhaojin Mining Industry | Lundin Gold vs. James Hardie Industries | Lundin Gold vs. Nitto Denko |
| Nippon Paint vs. Nitto Denko | Nippon Paint vs. Nippon Sanso Holdings | Nippon Paint vs. Industrias Penoles Sab | Nippon Paint vs. EMS CHEMIE HOLDING AG |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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