Correlation Between Thor Explorations and Robex Resources

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

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

Diversification Opportunities for Thor Explorations and Robex Resources

0.75

Correlation Coefficient

Thor Explorations  Robex Resources

Poor diversification

The 3 months correlation between Thor and Robex is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Thor Explorations and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Thor Explorations i.e., Thor Explorations and Robex Resources go up and down completely randomly.

Pair Corralation between Thor Explorations and Robex Resources

Assuming the 90 days horizon Thor Explorations is expected to generate 1.56 times more return on investment than Robex Resources. However, Thor Explorations is 1.56 times more volatile than Robex Resources. It trades about 0.15 of its potential returns per unit of risk. Robex Resources is currently generating about 0.11 per unit of risk. If you would invest  20.00  in Thor Explorations on July 24, 2025 and sell it today you would earn a total of  62.00  from holding Thor Explorations or generate 310.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.25%
Values	Daily Returns

Thor Explorations  vs.  Robex Resources

Thor Explorations

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thor Explorations are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Thor Explorations reported solid returns over the last few months and may actually be approaching a breakup point.

Robex Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Robex Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thor Explorations and Robex Resources

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

The idea behind Thor Explorations and Robex Resources 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.