Correlation Between Thor Mining and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Roebuck Food 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 Roebuck Food 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 Roebuck Food Group, you can compare the effects of market volatilities on Thor Mining and Roebuck Food 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 Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Roebuck Food.
Diversification Opportunities for Thor Mining and Roebuck Food
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thor and Roebuck is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group 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 Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of Thor Mining i.e., Thor Mining and Roebuck Food go up and down completely randomly.
Pair Corralation between Thor Mining and Roebuck Food
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Roebuck Food. In addition to that, Thor Mining is 2.43 times more volatile than Roebuck Food Group. It trades about -0.05 of its total potential returns per unit of risk. Roebuck Food Group is currently generating about 0.04 per unit of volatility. If you would invest 1,350 in Roebuck Food Group on October 30, 2024 and sell it today you would earn a total of 400.00 from holding Roebuck Food Group or generate 29.63% 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. Roebuck Food Group
Performance |
| Timeline |
| Thor Mining PLC |
| Roebuck Food Group |
Thor Mining and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Roebuck Food
The main advantage of trading using opposite Thor Mining and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food'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 |
| Roebuck Food vs. Adriatic Metals | Roebuck Food vs. Telecom Italia SpA | Roebuck Food vs. Thor Mining PLC | Roebuck Food vs. Evolution Gaming Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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