Correlation Between Thor Industries and PGE Corp
Can any of the company-specific risk be diversified away by investing in both Thor Industries and PGE Corp 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 PGE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and PGE Corp, you can compare the effects of market volatilities on Thor Industries and PGE Corp 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 PGE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and PGE Corp.
Diversification Opportunities for Thor Industries and PGE Corp
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thor and PGE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and PGE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE Corp 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 PGE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE Corp has no effect on the direction of Thor Industries i.e., Thor Industries and PGE Corp go up and down completely randomly.
Pair Corralation between Thor Industries and PGE Corp
Considering the 90-day investment horizon Thor Industries is expected to generate 2.26 times more return on investment than PGE Corp. However, Thor Industries is 2.26 times more volatile than PGE Corp. It trades about 0.15 of its potential returns per unit of risk. PGE Corp is currently generating about 0.23 per unit of risk. If you would invest 10,603 in Thor Industries on August 28, 2024 and sell it today you would earn a total of 712.00 from holding Thor Industries or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Industries vs. PGE Corp
Performance |
| Timeline |
| Thor Industries |
| PGE Corp |
Thor Industries and PGE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and PGE Corp
The main advantage of trading using opposite Thor Industries and PGE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, PGE Corp 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 PGE Corp will offset losses from the drop in PGE Corp's long position.| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
| PGE Corp vs. Consolidated Edison | PGE Corp vs. Southern Company | PGE Corp vs. Entergy | PGE Corp vs. Pinnacle West Capital |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |