Correlation Between Lloyds Banking and Anglesey Mining

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

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

Diversification Opportunities for Lloyds Banking and Anglesey Mining

-0.87

Correlation Coefficient

Lloyds Banking  Anglesey Mining

Pay attention - limited upside

The 3 months correlation between Lloyds and Anglesey is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and Anglesey Mining go up and down completely randomly.

Pair Corralation between Lloyds Banking and Anglesey Mining

If you would invest  7,556  in Lloyds Banking Group on April 21, 2025 and sell it today you would earn a total of  224.00  from holding Lloyds Banking Group or generate 2.96% return on investment over 90 days.

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

Lloyds Banking Group  vs.  Anglesey Mining

Lloyds Banking Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lloyds Banking Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Lloyds Banking may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Anglesey Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anglesey Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Anglesey Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lloyds Banking and Anglesey Mining

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

The idea behind Lloyds Banking Group and Anglesey Mining 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.