Correlation Between Thor Explorations and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Thor Explorations and Dow Jones 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 Explorations and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Explorations and Dow Jones Industrial, you can compare the effects of market volatilities on Thor Explorations and Dow Jones 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 Explorations with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Explorations and Dow Jones.
Diversification Opportunities for Thor Explorations and Dow Jones
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thor and Dow is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Thor Explorations 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 Explorations are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Thor Explorations i.e., Thor Explorations and Dow Jones go up and down completely randomly.
Pair Corralation between Thor Explorations and Dow Jones
Assuming the 90 days horizon Thor Explorations is expected to generate 5.04 times more return on investment than Dow Jones. However, Thor Explorations is 5.04 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of risk. If you would invest 25.00 in Thor Explorations on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Thor Explorations or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Thor Explorations vs. Dow Jones Industrial
Performance |
| Timeline |
Thor Explorations and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Thor Explorations
Pair trading matchups for Thor Explorations
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Thor Explorations and Dow Jones
The main advantage of trading using opposite Thor Explorations and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Explorations position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Thor Explorations vs. First Majestic Silver | Thor Explorations vs. Ivanhoe Energy | Thor Explorations vs. Orezone Gold Corp | Thor Explorations vs. Faraday Copper Corp |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |