Correlation Between Thinkific Labs and Pegasystems
Can any of the company-specific risk be diversified away by investing in both Thinkific Labs and Pegasystems 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 Thinkific Labs and Pegasystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thinkific Labs and Pegasystems, you can compare the effects of market volatilities on Thinkific Labs and Pegasystems 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 Thinkific Labs with a short position of Pegasystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkific Labs and Pegasystems.
Diversification Opportunities for Thinkific Labs and Pegasystems
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thinkific and Pegasystems is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Thinkific Labs and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems and Thinkific Labs 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 Thinkific Labs are associated (or correlated) with Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of Thinkific Labs i.e., Thinkific Labs and Pegasystems go up and down completely randomly.
Pair Corralation between Thinkific Labs and Pegasystems
Assuming the 90 days horizon Thinkific Labs is expected to generate 1.88 times less return on investment than Pegasystems. But when comparing it to its historical volatility, Thinkific Labs is 1.45 times less risky than Pegasystems. It trades about 0.15 of its potential returns per unit of risk. Pegasystems is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 8,939 in Pegasystems on September 13, 2024 and sell it today you would earn a total of 689.00 from holding Pegasystems or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thinkific Labs vs. Pegasystems
Performance |
| Timeline |
| Thinkific Labs |
| Pegasystems |
Thinkific Labs and Pegasystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkific Labs and Pegasystems
The main advantage of trading using opposite Thinkific Labs and Pegasystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkific Labs position performs unexpectedly, Pegasystems 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 Pegasystems will offset losses from the drop in Pegasystems' long position.| Thinkific Labs vs. Mojo Data Solutions | Thinkific Labs vs. Obocon Inc | Thinkific Labs vs. UBI Blockchain Internet | Thinkific Labs vs. Generative AI Solutions |
| Pegasystems vs. Wex Inc | Pegasystems vs. Cognex | Pegasystems vs. Progress Software | Pegasystems vs. Fair Isaac |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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