Correlation Between Lundin Mining and Dividend
Can any of the company-specific risk be diversified away by investing in both Lundin Mining and Dividend 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 Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining and Dividend 15 Split, you can compare the effects of market volatilities on Lundin Mining and Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Dividend.
Diversification Opportunities for Lundin Mining and Dividend
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lundin and Dividend is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split 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 are associated (or correlated) with Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Lundin Mining i.e., Lundin Mining and Dividend go up and down completely randomly.
Pair Corralation between Lundin Mining and Dividend
Assuming the 90 days trading horizon Lundin Mining is expected to generate 4.99 times more return on investment than Dividend. However, Lundin Mining is 4.99 times more volatile than Dividend 15 Split. It trades about 0.25 of its potential returns per unit of risk. Dividend 15 Split is currently generating about 0.35 per unit of risk. If you would invest 1,408 in Lundin Mining on July 26, 2025 and sell it today you would earn a total of 639.00 from holding Lundin Mining or generate 45.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining vs. Dividend 15 Split
Performance |
| Timeline |
| Lundin Mining |
| Dividend 15 Split |
Lundin Mining and Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Dividend
The main advantage of trading using opposite Lundin Mining and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining position performs unexpectedly, Dividend 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 Dividend will offset losses from the drop in Dividend's long position.| Lundin Mining vs. Capstone Mining Corp | Lundin Mining vs. First Quantum Minerals | Lundin Mining vs. Alamos Gold | Lundin Mining vs. Pan American Silver |
| Dividend vs. Premium Income | Dividend vs. Stack Capital Group | Dividend vs. Global Dividend Growth | Dividend vs. Canadian Life Companies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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