Correlation Between Thor Mining and Home Depot
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Home Depot 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 Home Depot 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 Home Depot, you can compare the effects of market volatilities on Thor Mining and Home Depot 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 Home Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Home Depot.
Diversification Opportunities for Thor Mining and Home Depot
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thor and Home is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Home Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Depot 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 Home Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Depot has no effect on the direction of Thor Mining i.e., Thor Mining and Home Depot go up and down completely randomly.
Pair Corralation between Thor Mining and Home Depot
If you would invest 17,857 in Home Depot on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Home Depot or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Mining PLC vs. Home Depot
Performance |
| Timeline |
| Thor Mining PLC |
| Home Depot |
Thor Mining and Home Depot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Home Depot
The main advantage of trading using opposite Thor Mining and Home Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Home Depot 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 Home Depot will offset losses from the drop in Home Depot's long position.| Thor Mining vs. Wyndham Hotels Resorts | Thor Mining vs. Sovereign Metals | Thor Mining vs. Capital Metals PLC | Thor Mining vs. Gear4music Plc |
| Home Depot vs. MG Credit Income | Home Depot vs. Supermarket Income REIT | Home Depot vs. Naked Wines plc | Home Depot vs. FinecoBank SpA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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