Correlation Between Lundin Gold and 172967MV0

Can any of the company-specific risk be diversified away by investing in both Lundin Gold and 172967MV0 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 172967MV0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lundin Gold and C 3875, you can compare the effects of market volatilities on Lundin Gold and 172967MV0 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 172967MV0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and 172967MV0.

Diversification Opportunities for Lundin Gold and 172967MV0

0.11

Correlation Coefficient

Lundin Gold  172967MV0

Average diversification

The 3 months correlation between Lundin and 172967MV0 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and C 3875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 172967MV0 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 172967MV0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 172967MV0 has no effect on the direction of Lundin Gold i.e., Lundin Gold and 172967MV0 go up and down completely randomly.

Pair Corralation between Lundin Gold and 172967MV0

Assuming the 90 days trading horizon Lundin Gold is expected to generate 5.81 times more return on investment than 172967MV0. However, Lundin Gold is 5.81 times more volatile than C 3875. It trades about 0.05 of its potential returns per unit of risk. C 3875 is currently generating about -0.07 per unit of risk. If you would invest  6,058  in Lundin Gold on May 6, 2025 and sell it today you would earn a total of  440.00  from holding Lundin Gold or generate 7.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lundin Gold  vs.  C 3875

Lundin Gold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Gold are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Lundin Gold may actually be approaching a critical reversion point that can send shares even higher in September 2025.

172967MV0

Risk-Adjusted Performance

Very Weak

Over the last 90 days C 3875 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 172967MV0 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lundin Gold and 172967MV0

The main advantage of trading using opposite Lundin Gold and 172967MV0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold position performs unexpectedly, 172967MV0 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 172967MV0 will offset losses from the drop in 172967MV0's long position.

The idea behind Lundin Gold and C 3875 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.