Correlation Between Thor Industries and Vera Bradley
Can any of the company-specific risk be diversified away by investing in both Thor Industries and Vera Bradley 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 Vera Bradley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and Vera Bradley, you can compare the effects of market volatilities on Thor Industries and Vera Bradley 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 Vera Bradley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and Vera Bradley.
Diversification Opportunities for Thor Industries and Vera Bradley
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thor and Vera is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and Vera Bradley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vera Bradley 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 Vera Bradley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vera Bradley has no effect on the direction of Thor Industries i.e., Thor Industries and Vera Bradley go up and down completely randomly.
Pair Corralation between Thor Industries and Vera Bradley
Considering the 90-day investment horizon Thor Industries is expected to generate 0.41 times more return on investment than Vera Bradley. However, Thor Industries is 2.42 times less risky than Vera Bradley. It trades about -0.16 of its potential returns per unit of risk. Vera Bradley is currently generating about -0.2 per unit of risk. If you would invest 11,175 in Thor Industries on September 13, 2024 and sell it today you would lose (662.00) from holding Thor Industries or give up 5.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Industries vs. Vera Bradley
Performance |
| Timeline |
| Thor Industries |
| Vera Bradley |
Thor Industries and Vera Bradley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and Vera Bradley
The main advantage of trading using opposite Thor Industries and Vera Bradley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, Vera Bradley 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 Vera Bradley will offset losses from the drop in Vera Bradley's long position.| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |