Correlation Between Thor Industries and MCBC Holdings
Can any of the company-specific risk be diversified away by investing in both Thor Industries and MCBC Holdings 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 Industries and MCBC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and MCBC Holdings, you can compare the effects of market volatilities on Thor Industries and MCBC Holdings 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 Industries with a short position of MCBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and MCBC Holdings.
Diversification Opportunities for Thor Industries and MCBC Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thor and MCBC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and MCBC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCBC Holdings and Thor Industries 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 Industries are associated (or correlated) with MCBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCBC Holdings has no effect on the direction of Thor Industries i.e., Thor Industries and MCBC Holdings go up and down completely randomly.
Pair Corralation between Thor Industries and MCBC Holdings
Considering the 90-day investment horizon Thor Industries is expected to generate 4.44 times less return on investment than MCBC Holdings. But when comparing it to its historical volatility, Thor Industries is 2.78 times less risky than MCBC Holdings. It trades about 0.15 of its potential returns per unit of risk. MCBC Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,623 in MCBC Holdings on August 24, 2024 and sell it today you would earn a total of 477.00 from holding MCBC Holdings or generate 29.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Thor Industries vs. MCBC Holdings
Performance |
| Timeline |
| Thor Industries |
| MCBC Holdings |
Thor Industries and MCBC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and MCBC Holdings
The main advantage of trading using opposite Thor Industries and MCBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, MCBC Holdings 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 MCBC Holdings will offset losses from the drop in MCBC Holdings' long position.| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
| MCBC Holdings vs. Malibu Boats | MCBC Holdings vs. Onewater Marine | MCBC Holdings vs. Heidrick Struggles International | MCBC Holdings vs. Johnson Outdoors |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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