Correlation Between Thor Mining and Zinc Media
Can any of the company-specific risk be diversified away by investing in both Thor Mining and Zinc Media 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 Zinc Media 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 Zinc Media Group, you can compare the effects of market volatilities on Thor Mining and Zinc Media 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Zinc Media.
Diversification Opportunities for Thor Mining and Zinc Media
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thor and Zinc is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Thor Mining i.e., Thor Mining and Zinc Media go up and down completely randomly.
Pair Corralation between Thor Mining and Zinc Media
Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Zinc Media. In addition to that, Thor Mining is 1.7 times more volatile than Zinc Media Group. It trades about -0.06 of its total potential returns per unit of risk. Zinc Media Group is currently generating about -0.06 per unit of volatility. If you would invest 7,750 in Zinc Media Group on October 12, 2024 and sell it today you would lose (2,100) from holding Zinc Media Group or give up 27.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Mining PLC vs. Zinc Media Group
Performance |
| Timeline |
| Thor Mining PLC |
| Zinc Media Group |
Thor Mining and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Mining and Zinc Media
The main advantage of trading using opposite Thor Mining and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| Thor Mining vs. Lindsell Train Investment | Thor Mining vs. FC Investment Trust | Thor Mining vs. Prosiebensat 1 Media | Thor Mining vs. Herald Investment Trust |
| Zinc Media vs. Axfood AB | Zinc Media vs. Thor Mining PLC | Zinc Media vs. Premier Foods PLC | Zinc Media vs. Anglo Asian Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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