Correlation Between Thunder Bridge and A SPAC
Can any of the company-specific risk be diversified away by investing in both Thunder Bridge and A SPAC 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 A SPAC 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 A SPAC II, you can compare the effects of market volatilities on Thunder Bridge and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Bridge and A SPAC.
Diversification Opportunities for Thunder Bridge and A SPAC
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thunder and ASCB is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and A SPAC go up and down completely randomly.
Pair Corralation between Thunder Bridge and A SPAC
Assuming the 90 days horizon Thunder Bridge Capital is expected to generate 0.75 times more return on investment than A SPAC. However, Thunder Bridge Capital is 1.32 times less risky than A SPAC. It trades about 0.04 of its potential returns per unit of risk. A SPAC II is currently generating about 0.02 per unit of risk. If you would invest 983.00 in Thunder Bridge Capital on August 30, 2024 and sell it today you would earn a total of 136.00 from holding Thunder Bridge Capital or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Bridge Capital vs. A SPAC II
Performance |
| Timeline |
| Thunder Bridge Capital |
| A SPAC II |
Thunder Bridge and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Bridge and A SPAC
The main advantage of trading using opposite Thunder Bridge and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Bridge position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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