Correlation Between Thor Mining and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Cornish 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 Cornish 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 Cornish Metals, you can compare the effects of market volatilities on Thor Mining and Cornish 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 Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Cornish Metals.
Diversification Opportunities for Thor Mining and Cornish Metals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thor and Cornish is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish 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 Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Thor Mining i.e., Thor Mining and Cornish Metals go up and down completely randomly.
Pair Corralation between Thor Mining and Cornish Metals
Assuming the 90 days trading horizon Thor Mining PLC is expected to generate 1.62 times more return on investment than Cornish Metals. However, Thor Mining is 1.62 times more volatile than Cornish Metals. It trades about 0.05 of its potential returns per unit of risk. Cornish Metals is currently generating about -0.03 per unit of risk. If you would invest 70.00 in Thor Mining PLC on November 4, 2024 and sell it today you would earn a total of 2.00 from holding Thor Mining PLC or generate 2.86% 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. Cornish Metals
Performance |
| Timeline |
| Thor Mining PLC |
| Cornish Metals |
Thor Mining and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Cornish Metals
The main advantage of trading using opposite Thor Mining and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Cornish 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Thor Mining vs. Bankers Investment Trust | Thor Mining vs. United Airlines Holdings | Thor Mining vs. Bank of Ireland | Thor Mining vs. Regions Financial Corp |
| Cornish Metals vs. Planet Fitness Cl | Cornish Metals vs. EVS Broadcast Equipment | Cornish Metals vs. Lindsell Train Investment | Cornish Metals vs. Martin Marietta Materials |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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