Correlation Between Olav Thon and Thor Medical
Can any of the company-specific risk be diversified away by investing in both Olav Thon and Thor Medical 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 Olav Thon and Thor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Olav Thon Eien and Thor Medical ASA, you can compare the effects of market volatilities on Olav Thon and Thor Medical 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 Olav Thon with a short position of Thor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Olav Thon and Thor Medical.
Diversification Opportunities for Olav Thon and Thor Medical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Olav and Thor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Olav Thon Eien and Thor Medical ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Medical ASA and Olav Thon 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 Olav Thon Eien are associated (or correlated) with Thor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Medical ASA has no effect on the direction of Olav Thon i.e., Olav Thon and Thor Medical go up and down completely randomly.
Pair Corralation between Olav Thon and Thor Medical
Assuming the 90 days trading horizon Olav Thon is expected to generate 1.01 times less return on investment than Thor Medical. But when comparing it to its historical volatility, Olav Thon Eien is 1.34 times less risky than Thor Medical. It trades about 0.11 of its potential returns per unit of risk. Thor Medical ASA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Thor Medical ASA on September 8, 2025 and sell it today you would earn a total of 62.00 from holding Thor Medical ASA or generate 17.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Olav Thon Eien vs. Thor Medical ASA
Performance |
| Timeline |
| Olav Thon Eien |
| Thor Medical ASA |
Olav Thon and Thor Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Olav Thon and Thor Medical
The main advantage of trading using opposite Olav Thon and Thor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Olav Thon position performs unexpectedly, Thor Medical 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 Thor Medical will offset losses from the drop in Thor Medical's long position.| Olav Thon vs. Entra ASA | Olav Thon vs. Public Property Invest | Olav Thon vs. Baltic Sea Properties | Olav Thon vs. Kmc Properties ASA |
| Thor Medical vs. Arcticzymes Technologies ASA | Thor Medical vs. Nykode Therapeutics ASA | Thor Medical vs. Hofseth Biocare ASA | Thor Medical vs. Lytix Biopharma AS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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