Correlation Between Thor Explorations and Made Tech

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

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

Diversification Opportunities for Thor Explorations and Made Tech

0.73

Correlation Coefficient

Thor Explorations  Made Tech

Poor diversification

The 3 months correlation between Thor and Made is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Made Tech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Made Tech Group 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 Made Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Made Tech Group has no effect on the direction of Thor Explorations i.e., Thor Explorations and Made Tech go up and down completely randomly.

Pair Corralation between Thor Explorations and Made Tech

Assuming the 90 days trading horizon Thor Explorations is expected to generate 1.24 times less return on investment than Made Tech. But when comparing it to its historical volatility, Thor Explorations is 1.12 times less risky than Made Tech. It trades about 0.18 of its potential returns per unit of risk. Made Tech Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  2,450  in Made Tech Group on April 24, 2025 and sell it today you would earn a total of  1,075  from holding Made Tech Group or generate 43.88% return on investment over 90 days.

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

Thor Explorations  vs.  Made Tech Group

Thor Explorations

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Explorations are ranked lower than 14 (%) 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.

Made Tech Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Made Tech Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Made Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thor Explorations and Made Tech

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

The idea behind Thor Explorations and Made Tech Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.