Correlation Between Callaway Golf and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Callaway Golf 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 Callaway Golf and Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Callaway Golf and Thor Industries, you can compare the effects of market volatilities on Callaway Golf 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 Callaway Golf with a short position of Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Callaway Golf and Thor Industries.
Diversification Opportunities for Callaway Golf and Thor Industries
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Callaway and Thor is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Callaway Golf and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and Callaway Golf 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 Callaway Golf 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 Callaway Golf i.e., Callaway Golf and Thor Industries go up and down completely randomly.
Pair Corralation between Callaway Golf and Thor Industries
Given the investment horizon of 90 days Callaway Golf is expected to under-perform the Thor Industries. In addition to that, Callaway Golf is 1.4 times more volatile than Thor Industries. It trades about -0.12 of its total potential returns per unit of risk. Thor Industries is currently generating about 0.03 per unit of volatility. If you would invest 10,539 in Thor Industries on September 4, 2024 and sell it today you would earn a total of 310.00 from holding Thor Industries or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Callaway Golf vs. Thor Industries
Performance |
| Timeline |
| Callaway Golf |
| Thor Industries |
Callaway Golf and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Callaway Golf and Thor Industries
The main advantage of trading using opposite Callaway Golf and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Callaway Golf 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.| Callaway Golf vs. Thor Industries | Callaway Golf vs. BRP Inc | Callaway Golf vs. EZGO Technologies | Callaway Golf vs. Polaris Industries |
| 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.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |