Correlation Between Thor Explorations and Advance Gold
Can any of the company-specific risk be diversified away by investing in both Thor Explorations and Advance Gold 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 Advance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Explorations and Advance Gold Corp, you can compare the effects of market volatilities on Thor Explorations and Advance Gold 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 Advance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Explorations and Advance Gold.
Diversification Opportunities for Thor Explorations and Advance Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thor and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Advance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Gold Corp 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 Advance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Gold Corp has no effect on the direction of Thor Explorations i.e., Thor Explorations and Advance Gold go up and down completely randomly.
Pair Corralation between Thor Explorations and Advance Gold
Assuming the 90 days horizon Thor Explorations is expected to generate 2.09 times more return on investment than Advance Gold. However, Thor Explorations is 2.09 times more volatile than Advance Gold Corp. It trades about 0.03 of its potential returns per unit of risk. Advance Gold Corp is currently generating about -0.11 per unit of risk. If you would invest 22.00 in Thor Explorations on August 31, 2024 and sell it today you would lose (1.00) from holding Thor Explorations or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Explorations vs. Advance Gold Corp
Performance |
| Timeline |
| Thor Explorations |
| Advance Gold Corp |
Thor Explorations and Advance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Explorations and Advance Gold
The main advantage of trading using opposite Thor Explorations and Advance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Explorations position performs unexpectedly, Advance Gold 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 Advance Gold will offset losses from the drop in Advance Gold's long position.| Thor Explorations vs. Cabral Gold | Thor Explorations vs. Cartier Resources | Thor Explorations vs. Lion One Metals | Thor Explorations vs. Equinox Gold Corp |
| Advance Gold vs. Minnova Corp | Advance Gold vs. Blue Star Gold | Advance Gold vs. Angkor Resources Corp | Advance Gold vs. Advance United Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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