Correlation Between Thor Explorations and Premier Foods

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

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

Diversification Opportunities for Thor Explorations and Premier Foods

0.33

Correlation Coefficient

Thor Explorations  Premier Foods

Weak diversification

The 3 months correlation between Thor and Premier is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Premier Foods PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Foods PLC 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 Premier Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Foods PLC has no effect on the direction of Thor Explorations i.e., Thor Explorations and Premier Foods go up and down completely randomly.

Pair Corralation between Thor Explorations and Premier Foods

Assuming the 90 days trading horizon Thor Explorations is expected to generate 2.91 times more return on investment than Premier Foods. However, Thor Explorations is 2.91 times more volatile than Premier Foods PLC. It trades about 0.28 of its potential returns per unit of risk. Premier Foods PLC is currently generating about 0.14 per unit of risk. If you would invest  2,156  in Thor Explorations on April 6, 2025 and sell it today you would earn a total of  1,894  from holding Thor Explorations or generate 87.85% return on investment over 90 days.

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

Thor Explorations  vs.  Premier Foods PLC

Thor Explorations

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Explorations are ranked lower than 22 (%) 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.

Premier Foods PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Premier Foods PLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Premier Foods may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Thor Explorations and Premier Foods

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

The idea behind Thor Explorations and Premier Foods PLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.