Correlation Between Thor Explorations and Chalice Mining

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

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

Diversification Opportunities for Thor Explorations and Chalice Mining

0.58

Correlation Coefficient

Thor Explorations  Chalice Mining

Very weak diversification

The 3 months correlation between Thor and Chalice is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Mining 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 Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of Thor Explorations i.e., Thor Explorations and Chalice Mining go up and down completely randomly.

Pair Corralation between Thor Explorations and Chalice Mining

Assuming the 90 days horizon Thor Explorations is expected to generate 1.03 times less return on investment than Chalice Mining. But when comparing it to its historical volatility, Thor Explorations is 1.46 times less risky than Chalice Mining. It trades about 0.17 of its potential returns per unit of risk. Chalice Mining Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  113.00  in Chalice Mining Limited on October 6, 2025 and sell it today you would earn a total of  29.00  from holding Chalice Mining Limited or generate 25.66% 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.  Chalice Mining Limited

Thor Explorations

Risk-Adjusted Performance

Weakest

Over the last 90 days Thor Explorations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Thor Explorations is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Chalice Mining

Risk-Adjusted Performance

Weakest

Over the last 90 days Chalice Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Chalice Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Thor Explorations and Chalice Mining

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

The idea behind Thor Explorations and Chalice Mining Limited 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.