Correlation Between EZGO Technologies and Thor Industries
Can any of the company-specific risk be diversified away by investing in both EZGO Technologies 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 EZGO Technologies and Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EZGO Technologies and Thor Industries, you can compare the effects of market volatilities on EZGO Technologies 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 EZGO Technologies with a short position of Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZGO Technologies and Thor Industries.
Diversification Opportunities for EZGO Technologies and Thor Industries
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EZGO and Thor is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding EZGO Technologies and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and EZGO Technologies 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 EZGO Technologies 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 EZGO Technologies i.e., EZGO Technologies and Thor Industries go up and down completely randomly.
Pair Corralation between EZGO Technologies and Thor Industries
Given the investment horizon of 90 days EZGO Technologies is expected to under-perform the Thor Industries. In addition to that, EZGO Technologies is 1.84 times more volatile than Thor Industries. It trades about -0.34 of its total potential returns per unit of risk. Thor Industries is currently generating about 0.15 per unit of volatility. If you would invest 10,375 in Thor Industries on August 24, 2024 and sell it today you would earn a total of 678.00 from holding Thor Industries or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
EZGO Technologies vs. Thor Industries
Performance |
| Timeline |
| EZGO Technologies |
| Thor Industries |
EZGO Technologies and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EZGO Technologies and Thor Industries
The main advantage of trading using opposite EZGO Technologies and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZGO Technologies 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.| EZGO Technologies vs. Vision Marine Technologies | EZGO Technologies vs. Marine Products | EZGO Technologies vs. Thor Industries | EZGO Technologies vs. BRP Inc |
| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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