Correlation Between Bluestone Resources and Thor Explorations
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and Thor Explorations 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 Bluestone Resources and Thor Explorations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Thor Explorations, you can compare the effects of market volatilities on Bluestone Resources and Thor Explorations 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 Bluestone Resources with a short position of Thor Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Thor Explorations.
Diversification Opportunities for Bluestone Resources and Thor Explorations
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bluestone and Thor is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations and Bluestone Resources 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 Bluestone Resources are associated (or correlated) with Thor Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Explorations has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and Thor Explorations go up and down completely randomly.
Pair Corralation between Bluestone Resources and Thor Explorations
Assuming the 90 days horizon Bluestone Resources is expected to generate 1.2 times less return on investment than Thor Explorations. In addition to that, Bluestone Resources is 1.41 times more volatile than Thor Explorations. It trades about 0.02 of its total potential returns per unit of risk. Thor Explorations is currently generating about 0.04 per unit of volatility. If you would invest 15.00 in Thor Explorations on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Thor Explorations or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.72% |
| Values | Daily Returns |
Bluestone Resources vs. Thor Explorations
Performance |
| Timeline |
| Bluestone Resources |
| Thor Explorations |
Bluestone Resources and Thor Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Thor Explorations
The main advantage of trading using opposite Bluestone Resources and Thor Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, Thor Explorations 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 Explorations will offset losses from the drop in Thor Explorations' long position.| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources vs. Blue Star Gold |
| Thor Explorations vs. Vertiv Holdings Co | Thor Explorations vs. Nasdaq Inc | Thor Explorations vs. McDonalds | Thor Explorations vs. Walmart |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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