Correlation Between Thor Mining and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Thor Mining and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Evolution Gaming.
Diversification Opportunities for Thor Mining and Evolution Gaming
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thor and Evolution is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Thor Mining i.e., Thor Mining and Evolution Gaming go up and down completely randomly.
Pair Corralation between Thor Mining and Evolution Gaming
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Evolution Gaming. In addition to that, Thor Mining is 2.51 times more volatile than Evolution Gaming Group. It trades about -0.05 of its total potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.04 per unit of volatility. If you would invest 130,107 in Evolution Gaming Group on October 30, 2024 and sell it today you would lose (43,707) from holding Evolution Gaming Group or give up 33.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Thor Mining PLC vs. Evolution Gaming Group
Performance |
| Timeline |
| Thor Mining PLC |
| Evolution Gaming |
Thor Mining and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Evolution Gaming
The main advantage of trading using opposite Thor Mining and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Thor Mining vs. Flutter Entertainment PLC | Thor Mining vs. Catalyst Media Group | Thor Mining vs. AcadeMedia AB | Thor Mining vs. Ross Stores |
| Evolution Gaming vs. Moneta Money Bank | Evolution Gaming vs. Baker Steel Resources | Evolution Gaming vs. Foresight Environmental Infrastructure | Evolution Gaming vs. Impax Environmental Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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