Correlation Between Thor Mining and Systemair
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Systemair 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 Thor Mining and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Mining PLC and Systemair AB, you can compare the effects of market volatilities on Thor Mining and Systemair 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 Thor Mining with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Systemair.
Diversification Opportunities for Thor Mining and Systemair
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thor and Systemair is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Thor 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 Thor Mining PLC are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Thor Mining i.e., Thor Mining and Systemair go up and down completely randomly.
Pair Corralation between Thor Mining and Systemair
Assuming the 90 days trading horizon Thor Mining PLC is expected to generate 2.72 times more return on investment than Systemair. However, Thor Mining is 2.72 times more volatile than Systemair AB. It trades about -0.05 of its potential returns per unit of risk. Systemair AB is currently generating about -0.51 per unit of risk. If you would invest 73.00 in Thor Mining PLC on October 12, 2024 and sell it today you would lose (3.00) from holding Thor Mining PLC or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Mining PLC vs. Systemair AB
Performance |
| Timeline |
| Thor Mining PLC |
| Systemair AB |
Thor Mining and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Systemair
The main advantage of trading using opposite Thor Mining and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Thor Mining vs. Capital Metals PLC | Thor Mining vs. Empire Metals Limited | Thor Mining vs. Europa Metals | Thor Mining vs. Coeur Mining |
| Systemair vs. Bisichi Mining PLC | Systemair vs. Thor Mining PLC | Systemair vs. Deltex Medical Group | Systemair vs. Advanced Medical Solutions |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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