Correlation Between Thor Mining and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals, you can compare the effects of market volatilities on Thor Mining and Silvercorp Metals 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 Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Silvercorp Metals.
Diversification Opportunities for Thor Mining and Silvercorp Metals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thor and Silvercorp is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals 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 Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Thor Mining i.e., Thor Mining and Silvercorp Metals go up and down completely randomly.
Pair Corralation between Thor Mining and Silvercorp Metals
Assuming the 90 days trading horizon Thor Mining PLC is expected to generate 0.62 times more return on investment than Silvercorp Metals. However, Thor Mining PLC is 1.61 times less risky than Silvercorp Metals. It trades about 0.01 of its potential returns per unit of risk. Silvercorp Metals is currently generating about -0.29 per unit of risk. If you would invest 80.00 in Thor Mining PLC on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Thor Mining PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Mining PLC vs. Silvercorp Metals
Performance |
| Timeline |
| Thor Mining PLC |
| Silvercorp Metals |
Thor Mining and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Silvercorp Metals
The main advantage of trading using opposite Thor Mining and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya Mining |
| Silvercorp Metals vs. Samsung Electronics Co | Silvercorp Metals vs. Samsung Electronics Co | Silvercorp Metals vs. Hyundai Motor | Silvercorp Metals vs. Toyota Motor Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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