Correlation Between Thor Explorations and Batm Advanced

Can any of the company-specific risk be diversified away by investing in both Thor Explorations and Batm Advanced 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 Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thor Explorations and Batm Advanced Communications, you can compare the effects of market volatilities on Thor Explorations and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Explorations and Batm Advanced.

Diversification Opportunities for Thor Explorations and Batm Advanced

0.41

Correlation Coefficient

Thor Explorations  Batm Advanced

Very weak diversification

The 3 months correlation between Thor and Batm is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Thor Explorations i.e., Thor Explorations and Batm Advanced go up and down completely randomly.

Pair Corralation between Thor Explorations and Batm Advanced

Assuming the 90 days trading horizon Thor Explorations is expected to generate 1.15 times more return on investment than Batm Advanced. However, Thor Explorations is 1.15 times more volatile than Batm Advanced Communications. It trades about 0.1 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.09 per unit of risk. If you would invest  3,429  in Thor Explorations on April 22, 2025 and sell it today you would earn a total of  596.00  from holding Thor Explorations or generate 17.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Thor Explorations  vs.  Batm Advanced Communications

Thor Explorations

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Explorations are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Thor Explorations exhibited solid returns over the last few months and may actually be approaching a breakup point.

Batm Advanced Commun

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Batm Advanced Communications are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Batm Advanced exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thor Explorations and Batm Advanced

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

The idea behind Thor Explorations and Batm Advanced Communications 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.