Correlation Between Thunderful Group and Adventure Box
Can any of the company-specific risk be diversified away by investing in both Thunderful Group and Adventure Box 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 Thunderful Group and Adventure Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thunderful Group AB and Adventure Box Technology, you can compare the effects of market volatilities on Thunderful Group and Adventure Box 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 Thunderful Group with a short position of Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderful Group and Adventure Box.
Diversification Opportunities for Thunderful Group and Adventure Box
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thunderful and Adventure is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thunderful Group AB and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology and Thunderful Group 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 Thunderful Group AB are associated (or correlated) with Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of Thunderful Group i.e., Thunderful Group and Adventure Box go up and down completely randomly.
Pair Corralation between Thunderful Group and Adventure Box
Assuming the 90 days trading horizon Thunderful Group AB is expected to generate 0.34 times more return on investment than Adventure Box. However, Thunderful Group AB is 2.93 times less risky than Adventure Box. It trades about 0.03 of its potential returns per unit of risk. Adventure Box Technology is currently generating about -0.03 per unit of risk. If you would invest 71.00 in Thunderful Group AB on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Thunderful Group AB or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunderful Group AB vs. Adventure Box Technology
Performance |
| Timeline |
| Thunderful Group |
| Adventure Box Technology |
Thunderful Group and Adventure Box Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunderful Group and Adventure Box
The main advantage of trading using opposite Thunderful Group and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderful Group position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box's long position.| Thunderful Group vs. Stillfront Group AB | Thunderful Group vs. Embracer Group AB | Thunderful Group vs. Enad Global 7 | Thunderful Group vs. Kambi Group PLC |
| Adventure Box vs. Flexion Mobile PLC | Adventure Box vs. Stillfront Group AB | Adventure Box vs. iZafe Group AB |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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