Correlation Between Thor Mining and Take Two
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Take Two 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 Take Two 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 Take Two Interactive Software, you can compare the effects of market volatilities on Thor Mining and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Take Two.
Diversification Opportunities for Thor Mining and Take Two
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thor and Take is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Thor Mining i.e., Thor Mining and Take Two go up and down completely randomly.
Pair Corralation between Thor Mining and Take Two
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Take Two. In addition to that, Thor Mining is 2.63 times more volatile than Take Two Interactive Software. It trades about -0.07 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.04 per unit of volatility. If you would invest 16,845 in Take Two Interactive Software on November 3, 2024 and sell it today you would earn a total of 2,055 from holding Take Two Interactive Software or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Thor Mining PLC vs. Take Two Interactive Software
Performance |
| Timeline |
| Thor Mining PLC |
| Take Two Interactive |
Thor Mining and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Take Two
The main advantage of trading using opposite Thor Mining and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| Thor Mining vs. JD Sports Fashion | Thor Mining vs. Prosiebensat 1 Media | Thor Mining vs. Catena Media PLC | Thor Mining vs. Ebro Foods |
| Take Two vs. TBC Bank Group | Take Two vs. UNIQA Insurance Group | Take Two vs. Sydbank | Take Two vs. Liechtensteinische Landesbank AG |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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