Correlation Between Growth Fund and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Thunder Bridge 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 Growth Fund and Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Thunder Bridge Capital, you can compare the effects of market volatilities on Growth Fund and Thunder Bridge 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 Growth Fund with a short position of Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Thunder Bridge.
Diversification Opportunities for Growth Fund and Thunder Bridge
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Growth and Thunder is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital and Growth Fund 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 Growth Fund Of are associated (or correlated) with Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Growth Fund i.e., Growth Fund and Thunder Bridge go up and down completely randomly.
Pair Corralation between Growth Fund and Thunder Bridge
Assuming the 90 days horizon Growth Fund is expected to generate 1.08 times less return on investment than Thunder Bridge. But when comparing it to its historical volatility, Growth Fund Of is 2.07 times less risky than Thunder Bridge. It trades about 0.1 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,023 in Thunder Bridge Capital on November 3, 2024 and sell it today you would earn a total of 219.00 from holding Thunder Bridge Capital or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.64% |
| Values | Daily Returns |
Growth Fund Of vs. Thunder Bridge Capital
Performance |
| Timeline |
| Growth Fund |
| Thunder Bridge Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Growth Fund and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Thunder Bridge
The main advantage of trading using opposite Growth Fund and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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