Correlation Between Cepton and Thayer Ventures
Can any of the company-specific risk be diversified away by investing in both Cepton and Thayer Ventures 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 Cepton and Thayer Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cepton Inc and Thayer Ventures Acquisition, you can compare the effects of market volatilities on Cepton and Thayer Ventures 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 Cepton with a short position of Thayer Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cepton and Thayer Ventures.
Diversification Opportunities for Cepton and Thayer Ventures
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cepton and Thayer is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cepton Inc and Thayer Ventures Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thayer Ventures Acqu and Cepton 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 Cepton Inc are associated (or correlated) with Thayer Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thayer Ventures Acqu has no effect on the direction of Cepton i.e., Cepton and Thayer Ventures go up and down completely randomly.
Pair Corralation between Cepton and Thayer Ventures
Given the investment horizon of 90 days Cepton Inc is expected to under-perform the Thayer Ventures. But the stock apears to be less risky and, when comparing its historical volatility, Cepton Inc is 3.76 times less risky than Thayer Ventures. The stock trades about -0.02 of its potential returns per unit of risk. The Thayer Ventures Acquisition is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Thayer Ventures Acquisition on August 27, 2024 and sell it today you would lose (10.80) from holding Thayer Ventures Acquisition or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cepton Inc vs. Thayer Ventures Acquisition
Performance |
| Timeline |
| Cepton Inc |
| Thayer Ventures Acqu |
Cepton and Thayer Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cepton and Thayer Ventures
The main advantage of trading using opposite Cepton and Thayer Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cepton position performs unexpectedly, Thayer Ventures 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 Thayer Ventures will offset losses from the drop in Thayer Ventures' long position.The idea behind Cepton Inc and Thayer Ventures Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thayer Ventures vs. Inspirato | Thayer Ventures vs. Anghami De | Thayer Ventures vs. Cepton Inc | Thayer Ventures vs. Cepton Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |