Correlation Between Lundin Gold and FIRST SHIP
Can any of the company-specific risk be diversified away by investing in both Lundin Gold and FIRST SHIP 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 SHIP 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 SHIP LEASE, you can compare the effects of market volatilities on Lundin Gold and FIRST SHIP 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 SHIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and FIRST SHIP.
Diversification Opportunities for Lundin Gold and FIRST SHIP
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and FIRST is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and FIRST SHIP LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SHIP LEASE 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 SHIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SHIP LEASE has no effect on the direction of Lundin Gold i.e., Lundin Gold and FIRST SHIP go up and down completely randomly.
Pair Corralation between Lundin Gold and FIRST SHIP
Assuming the 90 days trading horizon Lundin Gold is expected to generate 1.03 times more return on investment than FIRST SHIP. However, Lundin Gold is 1.03 times more volatile than FIRST SHIP LEASE. It trades about 0.07 of its potential returns per unit of risk. FIRST SHIP LEASE is currently generating about 0.04 per unit of risk. If you would invest 3,659 in Lundin Gold on April 22, 2025 and sell it today you would earn a total of 401.00 from holding Lundin Gold or generate 10.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lundin Gold vs. FIRST SHIP LEASE
Performance |
Timeline |
Lundin Gold |
FIRST SHIP LEASE |
Lundin Gold and FIRST SHIP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lundin Gold and FIRST SHIP
The main advantage of trading using opposite Lundin Gold and FIRST SHIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold position performs unexpectedly, FIRST SHIP 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 SHIP will offset losses from the drop in FIRST SHIP's long position.Lundin Gold vs. Magic Software Enterprises | Lundin Gold vs. Data3 Limited | Lundin Gold vs. SWISS WATER DECAFFCOFFEE | Lundin Gold vs. AXWAY SOFTWARE EO |
FIRST SHIP vs. LG Display Co | FIRST SHIP vs. Live Nation Entertainment | FIRST SHIP vs. Flutter Entertainment PLC | FIRST SHIP vs. Addtech AB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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