Correlation Between Thunder Bridge and Patria Latin
Can any of the company-specific risk be diversified away by investing in both Thunder Bridge and Patria Latin 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 Thunder Bridge and Patria Latin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thunder Bridge Capital and Patria Latin American, you can compare the effects of market volatilities on Thunder Bridge and Patria Latin 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 Thunder Bridge with a short position of Patria Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Bridge and Patria Latin.
Diversification Opportunities for Thunder Bridge and Patria Latin
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thunder and Patria is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and Patria Latin American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Latin American and Thunder Bridge 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 Thunder Bridge Capital are associated (or correlated) with Patria Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Latin American has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and Patria Latin go up and down completely randomly.
Pair Corralation between Thunder Bridge and Patria Latin
Given the investment horizon of 90 days Thunder Bridge is expected to generate 1.32 times less return on investment than Patria Latin. But when comparing it to its historical volatility, Thunder Bridge Capital is 2.71 times less risky than Patria Latin. It trades about 0.06 of its potential returns per unit of risk. Patria Latin American is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,029 in Patria Latin American on August 30, 2024 and sell it today you would earn a total of 133.00 from holding Patria Latin American or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Thunder Bridge Capital vs. Patria Latin American
Performance |
| Timeline |
| Thunder Bridge Capital |
| Patria Latin American |
Thunder Bridge and Patria Latin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Bridge and Patria Latin
The main advantage of trading using opposite Thunder Bridge and Patria Latin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Bridge position performs unexpectedly, Patria Latin 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 Patria Latin will offset losses from the drop in Patria Latin's long position.| Thunder Bridge vs. Patria Latin American | Thunder Bridge vs. ABIVAX Socit Anonyme | Thunder Bridge vs. Pinnacle Sherman Multi Strategy | Thunder Bridge vs. Morningstar Unconstrained Allocation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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