Correlation Between HWH International and Thor Industries
Can any of the company-specific risk be diversified away by investing in both HWH International 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 HWH International and Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HWH International and Thor Industries, you can compare the effects of market volatilities on HWH International 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 HWH International with a short position of Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of HWH International and Thor Industries.
Diversification Opportunities for HWH International and Thor Industries
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HWH and Thor is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding HWH International and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and HWH International 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 HWH International 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 HWH International i.e., HWH International and Thor Industries go up and down completely randomly.
Pair Corralation between HWH International and Thor Industries
Considering the 90-day investment horizon HWH International is expected to generate 6.13 times more return on investment than Thor Industries. However, HWH International is 6.13 times more volatile than Thor Industries. It trades about 0.09 of its potential returns per unit of risk. Thor Industries is currently generating about 0.07 per unit of risk. If you would invest 46.00 in HWH International on September 12, 2024 and sell it today you would earn a total of 15.50 from holding HWH International or generate 33.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HWH International vs. Thor Industries
Performance |
| Timeline |
| HWH International |
| Thor Industries |
HWH International and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HWH International and Thor Industries
The main advantage of trading using opposite HWH International and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HWH International 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.| HWH International vs. Clarus Corp | HWH International vs. Escalade Incorporated | HWH International vs. Johnson Outdoors | HWH International vs. JAKKS Pacific |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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