Correlation Between Thunder Bridge and Prime Number
Can any of the company-specific risk be diversified away by investing in both Thunder Bridge and Prime Number 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 Prime Number 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 Prime Number Acquisition, you can compare the effects of market volatilities on Thunder Bridge and Prime Number 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 Prime Number. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Bridge and Prime Number.
Diversification Opportunities for Thunder Bridge and Prime Number
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thunder and Prime is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and Prime Number Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Number 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 Prime Number. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Number Acquisition has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and Prime Number go up and down completely randomly.
Pair Corralation between Thunder Bridge and Prime Number
Assuming the 90 days horizon Thunder Bridge Capital is expected to generate 1.84 times more return on investment than Prime Number. However, Thunder Bridge is 1.84 times more volatile than Prime Number Acquisition. It trades about 0.04 of its potential returns per unit of risk. Prime Number Acquisition is currently generating about 0.07 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 Together |
| Strength | Very Weak |
| Accuracy | 31.11% |
| Values | Daily Returns |
Thunder Bridge Capital vs. Prime Number Acquisition
Performance |
| Timeline |
| Thunder Bridge Capital |
| Prime Number Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thunder Bridge and Prime Number Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Bridge and Prime Number
The main advantage of trading using opposite Thunder Bridge and Prime Number positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Bridge position performs unexpectedly, Prime Number 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 Prime Number will offset losses from the drop in Prime Number'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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