Correlation Between Omineca Mining and Thor Explorations
Can any of the company-specific risk be diversified away by investing in both Omineca Mining 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 Omineca Mining and Thor Explorations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omineca Mining and and Thor Explorations, you can compare the effects of market volatilities on Omineca Mining 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 Omineca Mining with a short position of Thor Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omineca Mining and Thor Explorations.
Diversification Opportunities for Omineca Mining and Thor Explorations
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Omineca and Thor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Omineca Mining and and Thor Explorations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Explorations and Omineca Mining 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 Omineca Mining and 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 Omineca Mining i.e., Omineca Mining and Thor Explorations go up and down completely randomly.
Pair Corralation between Omineca Mining and Thor Explorations
Assuming the 90 days horizon Omineca Mining is expected to generate 6.46 times less return on investment than Thor Explorations. But when comparing it to its historical volatility, Omineca Mining and is 2.41 times less risky than Thor Explorations. It trades about 0.03 of its potential returns per unit of risk. Thor Explorations is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Thor Explorations on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Thor Explorations or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omineca Mining and vs. Thor Explorations
Performance |
| Timeline |
| Omineca Mining |
| Thor Explorations |
Omineca Mining and Thor Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omineca Mining and Thor Explorations
The main advantage of trading using opposite Omineca Mining and Thor Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omineca Mining 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.| Omineca Mining vs. Aurion Resources | Omineca Mining vs. Liberty Gold Corp | Omineca Mining vs. Orezone Gold Corp | Omineca Mining vs. Radisson Mining Resources |
| Thor Explorations vs. Aurion Resources | Thor Explorations vs. Liberty Gold Corp | Thor Explorations vs. Orezone Gold Corp | Thor Explorations vs. Radisson Mining Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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