Correlation Between Bloomsbury Publishing and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing 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 Bloomsbury Publishing and Thor Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and Thor Mining PLC, you can compare the effects of market volatilities on Bloomsbury Publishing 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 Bloomsbury Publishing with a short position of Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and Thor Mining.
Diversification Opportunities for Bloomsbury Publishing and Thor Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloomsbury and Thor is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc 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 Bloomsbury Publishing 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 Bloomsbury Publishing Plc 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 Bloomsbury Publishing i.e., Bloomsbury Publishing and Thor Mining go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and Thor Mining
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to generate 0.41 times more return on investment than Thor Mining. However, Bloomsbury Publishing Plc is 2.43 times less risky than Thor Mining. It trades about 0.04 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.04 per unit of risk. If you would invest 44,044 in Bloomsbury Publishing Plc on December 27, 2024 and sell it today you would earn a total of 16,156 from holding Bloomsbury Publishing Plc or generate 36.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomsbury Publishing Plc vs. Thor Mining PLC
Performance |
| Timeline |
| Bloomsbury Publishing Plc |
| Thor Mining PLC |
Bloomsbury Publishing and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomsbury Publishing and Thor Mining
The main advantage of trading using opposite Bloomsbury Publishing and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing 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.| Bloomsbury Publishing vs. Clean Power Hydrogen | Bloomsbury Publishing vs. BE Semiconductor Industries | Bloomsbury Publishing vs. Cardinal Health | Bloomsbury Publishing vs. Naturhouse Health SA |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Atalaya Mining | Thor Mining vs. Ferrexpo PLC |
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 Stocks Directory module to find actively traded stocks across global markets.
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