Correlation Between Thor Mining and Ameren Corp
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Ameren Corp 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 Ameren Corp 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 Ameren Corp, you can compare the effects of market volatilities on Thor Mining and Ameren Corp 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 Ameren Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Ameren Corp.
Diversification Opportunities for Thor Mining and Ameren Corp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thor and Ameren is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Ameren Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameren Corp 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 Ameren Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameren Corp has no effect on the direction of Thor Mining i.e., Thor Mining and Ameren Corp go up and down completely randomly.
Pair Corralation between Thor Mining and Ameren Corp
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Ameren Corp. In addition to that, Thor Mining is 2.06 times more volatile than Ameren Corp. It trades about -0.14 of its total potential returns per unit of risk. Ameren Corp is currently generating about 0.39 per unit of volatility. If you would invest 8,919 in Ameren Corp on October 24, 2024 and sell it today you would earn a total of 751.00 from holding Ameren Corp or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Thor Mining PLC vs. Ameren Corp
Performance |
| Timeline |
| Thor Mining PLC |
| Ameren Corp |
Thor Mining and Ameren Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Ameren Corp
The main advantage of trading using opposite Thor Mining and Ameren Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Ameren Corp 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 Ameren Corp will offset losses from the drop in Ameren Corp's long position.| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Ferrexpo PLC | Thor Mining vs. Atalaya Mining |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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