Correlation Between Thunderful Group and Media
Can any of the company-specific risk be diversified away by investing in both Thunderful Group and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Thunderful Group and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderful Group and Media.
Diversification Opportunities for Thunderful Group and Media
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thunderful and Media is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Thunderful Group AB and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Thunderful Group i.e., Thunderful Group and Media go up and down completely randomly.
Pair Corralation between Thunderful Group and Media
Assuming the 90 days trading horizon Thunderful Group AB is expected to generate 0.74 times more return on investment than Media. However, Thunderful Group AB is 1.35 times less risky than Media. It trades about 0.04 of its potential returns per unit of risk. Media and Games is currently generating about -0.01 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunderful Group AB vs. Media and Games
Performance |
| Timeline |
| Thunderful Group |
| Media and Games |
Thunderful Group and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunderful Group and Media
The main advantage of trading using opposite Thunderful Group and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderful Group position performs unexpectedly, Media 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 Media will offset losses from the drop in Media'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 |
| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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