Correlation Between Uniper SE and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Thor Industries 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 Uniper SE and Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Thor Industries, you can compare the effects of market volatilities on Uniper SE and Thor Industries 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 Uniper SE with a short position of Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Thor Industries.
Diversification Opportunities for Uniper SE and Thor Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uniper and Thor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and Uniper SE 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 Uniper SE are associated (or correlated) with Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Uniper SE i.e., Uniper SE and Thor Industries go up and down completely randomly.
Pair Corralation between Uniper SE and Thor Industries
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Thor Industries. But the stock apears to be less risky and, when comparing its historical volatility, Uniper SE is 1.01 times less risky than Thor Industries. The stock trades about -0.04 of its potential returns per unit of risk. The Thor Industries is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 11,111 in Thor Industries on October 10, 2024 and sell it today you would lose (1,291) from holding Thor Industries or give up 11.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.2% |
| Values | Daily Returns |
Uniper SE vs. Thor Industries
Performance |
| Timeline |
| Uniper SE |
| Thor Industries |
Uniper SE and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Thor Industries
The main advantage of trading using opposite Uniper SE and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Thor Industries 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 Industries will offset losses from the drop in Thor Industries' long position.| Uniper SE vs. Sligro Food Group | Uniper SE vs. CVS Health Corp | Uniper SE vs. MyHealthChecked Plc | Uniper SE vs. Bell Food Group |
| Thor Industries vs. Fidelity National Information | Thor Industries vs. Gamma Communications PLC | Thor Industries vs. Ion Beam Applications | Thor Industries vs. Dairy Farm International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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