Correlation Between Ferrexpo PLC and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Ferrexpo PLC 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 Ferrexpo PLC and Thor Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ferrexpo PLC and Thor Mining PLC, you can compare the effects of market volatilities on Ferrexpo PLC 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 Ferrexpo PLC with a short position of Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferrexpo PLC and Thor Mining.
Diversification Opportunities for Ferrexpo PLC and Thor Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ferrexpo and Thor is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ferrexpo 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 Ferrexpo PLC 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 Ferrexpo 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 Ferrexpo PLC i.e., Ferrexpo PLC and Thor Mining go up and down completely randomly.
Pair Corralation between Ferrexpo PLC and Thor Mining
Assuming the 90 days trading horizon Ferrexpo PLC is expected to generate 1.11 times more return on investment than Thor Mining. However, Ferrexpo PLC is 1.11 times more volatile than Thor Mining PLC. It trades about 0.05 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.05 per unit of risk. If you would invest 6,970 in Ferrexpo PLC on September 5, 2024 and sell it today you would earn a total of 2,810 from holding Ferrexpo PLC or generate 40.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ferrexpo PLC vs. Thor Mining PLC
Performance |
| Timeline |
| Ferrexpo PLC |
| Thor Mining PLC |
Ferrexpo PLC and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ferrexpo PLC and Thor Mining
The main advantage of trading using opposite Ferrexpo PLC and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferrexpo PLC 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.| Ferrexpo PLC vs. Herald Investment Trust | Ferrexpo PLC vs. Lords Grp Trading | Ferrexpo PLC vs. Hansa Investment | Ferrexpo PLC vs. New Residential Investment |
| Thor Mining vs. Antofagasta PLC | Thor Mining vs. Atalaya Mining | Thor Mining vs. Ferrexpo PLC | Thor Mining vs. Amaroq Minerals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |