Correlation Between Thor Mining and Spotify Technology

Can any of the company-specific risk be diversified away by investing in both Thor Mining and Spotify Technology 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 Spotify Technology 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 Spotify Technology SA, you can compare the effects of market volatilities on Thor Mining and Spotify Technology 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 Spotify Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Mining and Spotify Technology.

Diversification Opportunities for Thor Mining and Spotify Technology

0.13

Correlation Coefficient

Thor Mining  Spotify Technology

Average diversification

The 3 months correlation between Thor and Spotify is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thor Mining PLC and Spotify Technology SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spotify Technology 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 Spotify Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spotify Technology has no effect on the direction of Thor Mining i.e., Thor Mining and Spotify Technology go up and down completely randomly.

Pair Corralation between Thor Mining and Spotify Technology

Assuming the 90 days trading horizon Thor Mining PLC is expected to under-perform the Spotify Technology. In addition to that, Thor Mining is 1.72 times more volatile than Spotify Technology SA. It trades about -0.05 of its total potential returns per unit of risk. Spotify Technology SA is currently generating about 0.13 per unit of volatility. If you would invest  13,271  in Spotify Technology SA on April 24, 2025 and sell it today you would earn a total of  46,039  from holding Spotify Technology SA or generate 346.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.01%
Values	Daily Returns

Thor Mining PLC  vs.  Spotify Technology SA

Thor Mining PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Mining PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Thor Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Spotify Technology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Spotify Technology SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Spotify Technology may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Thor Mining and Spotify Technology

The main advantage of trading using opposite Thor Mining and Spotify Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Mining position performs unexpectedly, Spotify Technology 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 Spotify Technology will offset losses from the drop in Spotify Technology's long position.

The idea behind Thor Mining PLC and Spotify Technology SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.