Correlation Between Kaufman Et and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Thor 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 Kaufman Et and Thor Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Et Broad and Thor Mining PLC, you can compare the effects of market volatilities on Kaufman Et and Thor 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 Kaufman Et with a short position of Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Thor Mining.
Diversification Opportunities for Kaufman Et and Thor Mining
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kaufman and Thor is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Thor Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Mining PLC and Kaufman Et 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 Kaufman Et Broad are associated (or correlated) with Thor Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Mining PLC has no effect on the direction of Kaufman Et i.e., Kaufman Et and Thor Mining go up and down completely randomly.
Pair Corralation between Kaufman Et and Thor Mining
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 0.41 times more return on investment than Thor Mining. However, Kaufman Et Broad is 2.47 times less risky than Thor Mining. It trades about 0.07 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.06 per unit of risk. If you would invest 2,314 in Kaufman Et Broad on August 26, 2024 and sell it today you would earn a total of 951.00 from holding Kaufman Et Broad or generate 41.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Kaufman Et Broad vs. Thor Mining PLC
Performance |
| Timeline |
| Kaufman Et Broad |
| Thor Mining PLC |
Kaufman Et and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Thor Mining
The main advantage of trading using opposite Kaufman Et and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Thor 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 Thor Mining will offset losses from the drop in Thor Mining's long position.| Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Hyundai Motor | Kaufman Et vs. Toyota Motor Corp |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya Mining |
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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