Correlation Between Panther Metals and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and Thor Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Thor Mining PLC, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Thor Mining.
Diversification Opportunities for Panther Metals and Thor Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panther and Thor is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals 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 Panther Metals 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 Panther Metals 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 Panther Metals i.e., Panther Metals and Thor Mining go up and down completely randomly.
Pair Corralation between Panther Metals and Thor Mining
Assuming the 90 days trading horizon Panther Metals PLC is expected to under-perform the Thor Mining. In addition to that, Panther Metals is 1.44 times more volatile than Thor Mining PLC. It trades about -0.05 of its total potential returns per unit of risk. Thor Mining PLC is currently generating about -0.05 per unit of volatility. If you would invest 80.00 in Thor Mining PLC on October 31, 2024 and sell it today you would lose (15.00) from holding Thor Mining PLC or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Thor Mining PLC
Performance |
| Timeline |
| Panther Metals PLC |
| Thor Mining PLC |
Panther Metals and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Thor Mining
The main advantage of trading using opposite Panther Metals and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.| Panther Metals vs. One Media iP | Panther Metals vs. Telecom Italia SpA | Panther Metals vs. Zoom Video Communications | Panther Metals vs. CAP LEASE AVIATION |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Ferrexpo 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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