Correlation Between Thayer Ventures and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both Thayer Ventures and Oneconnect Financial 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 Thayer Ventures and Oneconnect Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thayer Ventures Acquisition and Oneconnect Financial Technology, you can compare the effects of market volatilities on Thayer Ventures and Oneconnect Financial 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 Thayer Ventures with a short position of Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and Oneconnect Financial.
Diversification Opportunities for Thayer Ventures and Oneconnect Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thayer and Oneconnect is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial and Thayer Ventures 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 Thayer Ventures Acquisition are associated (or correlated) with Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of Thayer Ventures i.e., Thayer Ventures and Oneconnect Financial go up and down completely randomly.
Pair Corralation between Thayer Ventures and Oneconnect Financial
Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 3.83 times more return on investment than Oneconnect Financial. However, Thayer Ventures is 3.83 times more volatile than Oneconnect Financial Technology. It trades about 0.09 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.02 per unit of risk. If you would invest 2.20 in Thayer Ventures Acquisition on September 19, 2024 and sell it today you would lose (1.35) from holding Thayer Ventures Acquisition or give up 61.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thayer Ventures Acquisition vs. Oneconnect Financial Technolog
Performance |
| Timeline |
| Thayer Ventures Acqu |
| Oneconnect Financial |
Thayer Ventures and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thayer Ventures and Oneconnect Financial
The main advantage of trading using opposite Thayer Ventures and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.| Thayer Ventures vs. Inspirato | Thayer Ventures vs. Anghami De | Thayer Ventures vs. Cepton Inc | Thayer Ventures vs. Cepton Inc |
| Oneconnect Financial vs. Swvl Holdings Corp | Oneconnect Financial vs. Guardforce AI Co | Oneconnect Financial vs. Thayer Ventures Acquisition |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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