Correlation Between THOR Financial and SPKY
Can any of the company-specific risk be diversified away by investing in both THOR Financial and SPKY 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 THOR Financial and SPKY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THOR Financial Technologies and SPKY, you can compare the effects of market volatilities on THOR Financial and SPKY 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 THOR Financial with a short position of SPKY. Check out your portfolio center. Please also check ongoing floating volatility patterns of THOR Financial and SPKY.
Diversification Opportunities for THOR Financial and SPKY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between THOR and SPKY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THOR Financial Technologies and SPKY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPKY and THOR Financial 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 THOR Financial Technologies are associated (or correlated) with SPKY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPKY has no effect on the direction of THOR Financial i.e., THOR Financial and SPKY go up and down completely randomly.
Pair Corralation between THOR Financial and SPKY
If you would invest 2,711 in THOR Financial Technologies on December 3, 2024 and sell it today you would earn a total of 17.00 from holding THOR Financial Technologies or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
THOR Financial Technologies vs. SPKY
Performance |
| Timeline |
| THOR Financial Techn |
| SPKY |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
THOR Financial and SPKY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THOR Financial and SPKY
The main advantage of trading using opposite THOR Financial and SPKY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THOR Financial position performs unexpectedly, SPKY 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 SPKY will offset losses from the drop in SPKY's long position.| THOR Financial vs. ETC 6 Meridian | THOR Financial vs. Harbor Dividend Growth | THOR Financial vs. Day HaganNed Davis |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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