Correlation Between Sdiptech and Lundin Mining

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

By analyzing existing cross correlation between Sdiptech AB and Lundin Mining Corp, you can compare the effects of market volatilities on Sdiptech and Lundin Mining 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 Sdiptech with a short position of Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sdiptech and Lundin Mining.

Diversification Opportunities for Sdiptech and Lundin Mining

0.1

Correlation Coefficient

Sdiptech  Lundin Mining

Average diversification

The 3 months correlation between Sdiptech and Lundin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sdiptech AB and Lundin Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining Corp and Sdiptech 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 Sdiptech AB are associated (or correlated) with Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining Corp has no effect on the direction of Sdiptech i.e., Sdiptech and Lundin Mining go up and down completely randomly.

Pair Corralation between Sdiptech and Lundin Mining

Assuming the 90 days trading horizon Sdiptech is expected to generate 62.29 times less return on investment than Lundin Mining. But when comparing it to its historical volatility, Sdiptech AB is 1.02 times less risky than Lundin Mining. It trades about 0.0 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  8,403  in Lundin Mining Corp on April 25, 2025 and sell it today you would earn a total of  1,557  from holding Lundin Mining Corp or generate 18.53% return on investment over 90 days.

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

Sdiptech AB  vs.  Lundin Mining Corp

Sdiptech AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sdiptech AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sdiptech is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Lundin Mining Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Mining Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Lundin Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sdiptech and Lundin Mining

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

The idea behind Sdiptech AB and Lundin Mining Corp 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.