Correlation Between Thor Industries and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Thor Industries and Uniper SE 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 Industries and Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and Uniper SE, you can compare the effects of market volatilities on Thor Industries and Uniper SE 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 Industries with a short position of Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and Uniper SE.
Diversification Opportunities for Thor Industries and Uniper SE
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thor and Uniper is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE and Thor Industries 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 Industries are associated (or correlated) with Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Thor Industries i.e., Thor Industries and Uniper SE go up and down completely randomly.
Pair Corralation between Thor Industries and Uniper SE
Assuming the 90 days trading horizon Thor Industries is expected to generate 0.66 times more return on investment than Uniper SE. However, Thor Industries is 1.51 times less risky than Uniper SE. It trades about 0.04 of its potential returns per unit of risk. Uniper SE is currently generating about 0.0 per unit of risk. If you would invest 7,248 in Thor Industries on September 23, 2024 and sell it today you would earn a total of 2,308 from holding Thor Industries or generate 31.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.67% |
| Values | Daily Returns |
Thor Industries vs. Uniper SE
Performance |
| Timeline |
| Thor Industries |
| Uniper SE |
Thor Industries and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and Uniper SE
The main advantage of trading using opposite Thor Industries and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Thor Industries vs. Uniper SE | Thor Industries vs. Mulberry Group PLC | Thor Industries vs. London Security Plc | Thor Industries vs. Triad Group PLC |
| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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