Correlation Between Amcor PLC and Thorney Technologies
Can any of the company-specific risk be diversified away by investing in both Amcor PLC and Thorney Technologies 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 Amcor PLC and Thorney Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amcor PLC and Thorney Technologies, you can compare the effects of market volatilities on Amcor PLC and Thorney Technologies 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 Amcor PLC with a short position of Thorney Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amcor PLC and Thorney Technologies.
Diversification Opportunities for Amcor PLC and Thorney Technologies
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amcor and Thorney is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amcor PLC and Thorney Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thorney Technologies and Amcor PLC 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 Amcor PLC are associated (or correlated) with Thorney Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thorney Technologies has no effect on the direction of Amcor PLC i.e., Amcor PLC and Thorney Technologies go up and down completely randomly.
Pair Corralation between Amcor PLC and Thorney Technologies
Assuming the 90 days trading horizon Amcor PLC is expected to generate 0.37 times more return on investment than Thorney Technologies. However, Amcor PLC is 2.73 times less risky than Thorney Technologies. It trades about 0.12 of its potential returns per unit of risk. Thorney Technologies is currently generating about 0.01 per unit of risk. If you would invest 1,544 in Amcor PLC on September 12, 2024 and sell it today you would earn a total of 45.00 from holding Amcor PLC or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amcor PLC vs. Thorney Technologies
Performance |
| Timeline |
| Amcor PLC |
| Thorney Technologies |
Amcor PLC and Thorney Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amcor PLC and Thorney Technologies
The main advantage of trading using opposite Amcor PLC and Thorney Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amcor PLC position performs unexpectedly, Thorney Technologies 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 Thorney Technologies will offset losses from the drop in Thorney Technologies' long position.| Amcor PLC vs. Aristocrat Leisure | Amcor PLC vs. Perpetual Credit Income | Amcor PLC vs. Credit Clear | Amcor PLC vs. Qbe Insurance Group |
| Thorney Technologies vs. Westpac Banking | Thorney Technologies vs. ABACUS STORAGE KING | Thorney Technologies vs. Odyssey Energy | Thorney Technologies vs. Ecofibre |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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