Correlation Between Thor Mining and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Thor Mining and GreenX 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 GreenX 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 GreenX Metals, you can compare the effects of market volatilities on Thor Mining and GreenX 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and GreenX Metals.
Diversification Opportunities for Thor Mining and GreenX Metals
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thor and GreenX is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Thor Mining i.e., Thor Mining and GreenX Metals go up and down completely randomly.
Pair Corralation between Thor Mining and GreenX Metals
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the GreenX Metals. In addition to that, Thor Mining is 1.42 times more volatile than GreenX Metals. It trades about -0.04 of its total potential returns per unit of risk. GreenX Metals is currently generating about 0.02 per unit of volatility. If you would invest 3,100 in GreenX Metals on August 30, 2024 and sell it today you would earn a total of 400.00 from holding GreenX Metals or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Mining PLC vs. GreenX Metals
Performance |
| Timeline |
| Thor Mining PLC |
| GreenX Metals |
Thor Mining and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and GreenX Metals
The main advantage of trading using opposite Thor Mining and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, GreenX 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Thor Mining vs. Capital Drilling | Thor Mining vs. Indutrade AB | Thor Mining vs. L3Harris Technologies | Thor Mining vs. Universal Music Group |
| GreenX Metals vs. Vitec Software Group | GreenX Metals vs. Allianz Technology Trust | GreenX Metals vs. Spotify Technology SA | GreenX Metals vs. Microchip Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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