Correlation Between Thunder Bridge and Acri Capital
Can any of the company-specific risk be diversified away by investing in both Thunder Bridge and Acri Capital 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 Acri Capital 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 Acri Capital Acquisition, you can compare the effects of market volatilities on Thunder Bridge and Acri Capital 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 Acri Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Bridge and Acri Capital.
Diversification Opportunities for Thunder Bridge and Acri Capital
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thunder and Acri is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and Acri Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acri Capital Acquisition 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 Acri Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acri Capital Acquisition has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and Acri Capital go up and down completely randomly.
Pair Corralation between Thunder Bridge and Acri Capital
Assuming the 90 days horizon Thunder Bridge Capital is expected to generate 0.23 times more return on investment than Acri Capital. However, Thunder Bridge Capital is 4.32 times less risky than Acri Capital. It trades about 0.07 of its potential returns per unit of risk. Acri Capital Acquisition is currently generating about 0.01 per unit of risk. If you would invest 1,023 in Thunder Bridge Capital on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Thunder Bridge Capital or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.13% |
| Values | Daily Returns |
Thunder Bridge Capital vs. Acri Capital Acquisition
Performance |
| Timeline |
| Thunder Bridge Capital |
| Acri Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thunder Bridge and Acri Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Bridge and Acri Capital
The main advantage of trading using opposite Thunder Bridge and Acri Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Bridge position performs unexpectedly, Acri Capital 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 Acri Capital will offset losses from the drop in Acri Capital's long position.| Thunder Bridge vs. Visa Class A | Thunder Bridge vs. Diamond Hill Investment | Thunder Bridge vs. Distoken Acquisition | Thunder Bridge vs. Associated Capital Group |
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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