Correlation Between Meridian Mining and Thesis Gold
Can any of the company-specific risk be diversified away by investing in both Meridian Mining and Thesis Gold 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 Meridian Mining and Thesis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridian Mining UK and Thesis Gold, you can compare the effects of market volatilities on Meridian Mining and Thesis Gold 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 Meridian Mining with a short position of Thesis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Mining and Thesis Gold.
Diversification Opportunities for Meridian Mining and Thesis Gold
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meridian and Thesis is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Mining UK and Thesis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thesis Gold and Meridian Mining 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 Meridian Mining UK are associated (or correlated) with Thesis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thesis Gold has no effect on the direction of Meridian Mining i.e., Meridian Mining and Thesis Gold go up and down completely randomly.
Pair Corralation between Meridian Mining and Thesis Gold
Assuming the 90 days horizon Meridian Mining UK is expected to generate 0.64 times more return on investment than Thesis Gold. However, Meridian Mining UK is 1.57 times less risky than Thesis Gold. It trades about 0.24 of its potential returns per unit of risk. Thesis Gold is currently generating about 0.09 per unit of risk. If you would invest 62.00 in Meridian Mining UK on August 27, 2025 and sell it today you would earn a total of 40.00 from holding Meridian Mining UK or generate 64.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridian Mining UK vs. Thesis Gold
Performance |
| Timeline |
| Meridian Mining UK |
| Thesis Gold |
Meridian Mining and Thesis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridian Mining and Thesis Gold
The main advantage of trading using opposite Meridian Mining and Thesis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Mining position performs unexpectedly, Thesis Gold 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 Thesis Gold will offset losses from the drop in Thesis Gold's long position.| Meridian Mining vs. Drugs Made In | Meridian Mining vs. Dream Industrial Real | Meridian Mining vs. Mako Mining Corp | Meridian Mining vs. ProUroCare Medical |
| Thesis Gold vs. Trip Technologies | Thesis Gold vs. National Storm Management | Thesis Gold vs. Infinite Technology Corp | Thesis Gold vs. Central China Management |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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