Correlation Between Thor Industries and KINDER
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By analyzing existing cross correlation between Thor Industries and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on Thor Industries and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and KINDER.
Diversification Opportunities for Thor Industries and KINDER
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thor and KINDER is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of Thor Industries i.e., Thor Industries and KINDER go up and down completely randomly.
Pair Corralation between Thor Industries and KINDER
Considering the 90-day investment horizon Thor Industries is expected to generate 0.98 times more return on investment than KINDER. However, Thor Industries is 1.02 times less risky than KINDER. It trades about 0.06 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about 0.03 per unit of risk. If you would invest 9,789 in Thor Industries on August 31, 2024 and sell it today you would earn a total of 1,371 from holding Thor Industries or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.4% |
| Values | Daily Returns |
Thor Industries vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
| Thor Industries |
| KINDER MORGAN ENERGY |
Thor Industries and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and KINDER
The main advantage of trading using opposite Thor Industries and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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