Correlation Between Thor Mining and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Thor Mining and JLEN Environmental 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 JLEN Environmental 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 JLEN Environmental Assets, you can compare the effects of market volatilities on Thor Mining and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and JLEN Environmental.
Diversification Opportunities for Thor Mining and JLEN Environmental
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thor and JLEN is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of Thor Mining i.e., Thor Mining and JLEN Environmental go up and down completely randomly.
Pair Corralation between Thor Mining and JLEN Environmental
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the JLEN Environmental. In addition to that, Thor Mining is 1.85 times more volatile than JLEN Environmental Assets. It trades about -0.17 of its total potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.3 per unit of volatility. If you would invest 8,630 in JLEN Environmental Assets on September 1, 2024 and sell it today you would lose (1,100) from holding JLEN Environmental Assets or give up 12.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Mining PLC vs. JLEN Environmental Assets
Performance |
| Timeline |
| Thor Mining PLC |
| JLEN Environmental Assets |
Thor Mining and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and JLEN Environmental
The main advantage of trading using opposite Thor Mining and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya Mining |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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