Correlation Between Thor Industries and U Power
Can any of the company-specific risk be diversified away by investing in both Thor Industries and U Power 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 U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and U Power Limited, you can compare the effects of market volatilities on Thor Industries and U Power 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 U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and U Power.
Diversification Opportunities for Thor Industries and U Power
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thor and UCAR is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited 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 U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of Thor Industries i.e., Thor Industries and U Power go up and down completely randomly.
Pair Corralation between Thor Industries and U Power
Considering the 90-day investment horizon Thor Industries is expected to generate 0.52 times more return on investment than U Power. However, Thor Industries is 1.92 times less risky than U Power. It trades about 0.07 of its potential returns per unit of risk. U Power Limited is currently generating about 0.01 per unit of risk. If you would invest 10,700 in Thor Industries on August 28, 2024 and sell it today you would earn a total of 854.00 from holding Thor Industries or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Industries vs. U Power Limited
Performance |
| Timeline |
| Thor Industries |
| U Power Limited |
Thor Industries and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and U Power
The main advantage of trading using opposite Thor Industries and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power's long position.| Thor Industries vs. Nio Class A | Thor Industries vs. Lucid Group | Thor Industries vs. Tesla Inc | Thor Industries vs. Mullen Automotive |
| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |