Correlation Between L3Harris Technologies and Thor Mining
Can any of the company-specific risk be diversified away by investing in both L3Harris Technologies 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 L3Harris Technologies and Thor Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L3Harris Technologies and Thor Mining PLC, you can compare the effects of market volatilities on L3Harris Technologies 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 L3Harris Technologies with a short position of Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of L3Harris Technologies and Thor Mining.
Diversification Opportunities for L3Harris Technologies and Thor Mining
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between L3Harris and Thor is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding L3Harris Technologies 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 L3Harris Technologies 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 L3Harris Technologies 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 L3Harris Technologies i.e., L3Harris Technologies and Thor Mining go up and down completely randomly.
Pair Corralation between L3Harris Technologies and Thor Mining
Assuming the 90 days trading horizon L3Harris Technologies is expected to generate 11.29 times less return on investment than Thor Mining. But when comparing it to its historical volatility, L3Harris Technologies is 1.72 times less risky than Thor Mining. It trades about 0.01 of its potential returns per unit of risk. Thor Mining PLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Thor Mining PLC on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Thor Mining PLC or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
L3Harris Technologies vs. Thor Mining PLC
Performance |
| Timeline |
| L3Harris Technologies |
| Thor Mining PLC |
L3Harris Technologies and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L3Harris Technologies and Thor Mining
The main advantage of trading using opposite L3Harris Technologies and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L3Harris Technologies 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.| L3Harris Technologies vs. United Airlines Holdings | L3Harris Technologies vs. Southwest Airlines Co | L3Harris Technologies vs. CleanTech Lithium plc | L3Harris Technologies vs. Allianz Technology Trust |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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