Correlation Between Thor Industries and White Label

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Can any of the company-specific risk be diversified away by investing in both Thor Industries and White Label 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 White Label into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and White Label Liquid, you can compare the effects of market volatilities on Thor Industries and White Label 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 White Label. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and White Label.

Diversification Opportunities for Thor Industries and White Label

ThorWhiteDiversified AwayThorWhiteDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Thor and White is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and White Label Liquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Label Liquid 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 White Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Label Liquid has no effect on the direction of Thor Industries i.e., Thor Industries and White Label go up and down completely randomly.

Pair Corralation between Thor Industries and White Label

Considering the 90-day investment horizon Thor Industries is expected to generate 0.45 times more return on investment than White Label. However, Thor Industries is 2.22 times less risky than White Label. It trades about 0.02 of its potential returns per unit of risk. White Label Liquid is currently generating about -0.06 per unit of risk. If you would invest  8,851  in Thor Industries on November 22, 2024 and sell it today you would earn a total of  1,202  from holding Thor Industries or generate 13.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Thor Industries  vs.  White Label Liquid

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15THO WLAB
       Timeline  
Thor Industries 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Thor Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb95100105110115
White Label Liquid 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days White Label Liquid has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, White Label is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00010.0001050.000110.000115

Thor Industries and White Label Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.97-2.23-1.48-0.730.00.711.422.132.84 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15THO WLAB
       Returns  

Pair Trading with Thor Industries and White Label

The main advantage of trading using opposite Thor Industries and White Label positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, White Label 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 White Label will offset losses from the drop in White Label's long position.
The idea behind Thor Industries and White Label Liquid pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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