Correlation Between Thor Mining and Paychex

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Paychex 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 Paychex 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 Paychex, you can compare the effects of market volatilities on Thor Mining and Paychex 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 Paychex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Paychex.

Diversification Opportunities for Thor Mining and Paychex

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Thor and Paychex is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Paychex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paychex 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 Paychex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paychex has no effect on the direction of Thor Mining i.e., Thor Mining and Paychex go up and down completely randomly.

Pair Corralation between Thor Mining and Paychex

Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Paychex. In addition to that, Thor Mining is 1.97 times more volatile than Paychex. It trades about -0.14 of its total potential returns per unit of risk. Paychex is currently generating about 0.2 per unit of volatility. If you would invest  13,904  in Paychex on October 24, 2024 and sell it today you would earn a total of  731.00  from holding Paychex or generate 5.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.0%
ValuesDaily Returns

Thor Mining PLC  vs.  Paychex

 Performance 
       Timeline  
Thor Mining PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Thor Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Paychex 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Paychex are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Paychex is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Thor Mining and Paychex Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thor Mining and Paychex

The main advantage of trading using opposite Thor Mining and Paychex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Paychex 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 Paychex will offset losses from the drop in Paychex's long position.
The idea behind Thor Mining PLC and Paychex pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios