Correlation Between Thorney Technologies and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Thorney Technologies and Maggie Beer 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 Thorney Technologies and Maggie Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thorney Technologies and Maggie Beer Holdings, you can compare the effects of market volatilities on Thorney Technologies and Maggie Beer 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 Thorney Technologies with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thorney Technologies and Maggie Beer.
Diversification Opportunities for Thorney Technologies and Maggie Beer
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thorney and Maggie is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thorney Technologies and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Thorney 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 Thorney Technologies are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Thorney Technologies i.e., Thorney Technologies and Maggie Beer go up and down completely randomly.
Pair Corralation between Thorney Technologies and Maggie Beer
Assuming the 90 days trading horizon Thorney Technologies is expected to generate 0.71 times more return on investment than Maggie Beer. However, Thorney Technologies is 1.41 times less risky than Maggie Beer. It trades about 0.02 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about -0.01 per unit of risk. If you would invest 14.00 in Thorney Technologies on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Thorney Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thorney Technologies vs. Maggie Beer Holdings
Performance |
| Timeline |
| Thorney Technologies |
| Maggie Beer Holdings |
Thorney Technologies and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thorney Technologies and Maggie Beer
The main advantage of trading using opposite Thorney Technologies and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thorney Technologies position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Thorney Technologies vs. Microequities Asset Management | Thorney Technologies vs. ARN Media Limited | Thorney Technologies vs. Carnegie Clean Energy | Thorney Technologies vs. Platinum Asset Management |
| Maggie Beer vs. Medical Developments International | Maggie Beer vs. Mirrabooka Investments | Maggie Beer vs. Garda Diversified Ppty | Maggie Beer vs. Argo Investments |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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