Correlation Between Thunderful Group and Stillfront Group
Can any of the company-specific risk be diversified away by investing in both Thunderful Group and Stillfront Group 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 Stillfront Group 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 Stillfront Group AB, you can compare the effects of market volatilities on Thunderful Group and Stillfront Group 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 Stillfront Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderful Group and Stillfront Group.
Diversification Opportunities for Thunderful Group and Stillfront Group
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thunderful and Stillfront is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Thunderful Group AB and Stillfront Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stillfront Group 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 Stillfront Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stillfront Group has no effect on the direction of Thunderful Group i.e., Thunderful Group and Stillfront Group go up and down completely randomly.
Pair Corralation between Thunderful Group and Stillfront Group
Assuming the 90 days trading horizon Thunderful Group AB is expected to under-perform the Stillfront Group. In addition to that, Thunderful Group is 1.53 times more volatile than Stillfront Group AB. It trades about -0.09 of its total potential returns per unit of risk. Stillfront Group AB is currently generating about -0.04 per unit of volatility. If you would invest 1,781 in Stillfront Group AB on August 25, 2024 and sell it today you would lose (1,116) from holding Stillfront Group AB or give up 62.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunderful Group AB vs. Stillfront Group AB
Performance |
| Timeline |
| Thunderful Group |
| Stillfront Group |
Thunderful Group and Stillfront Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunderful Group and Stillfront Group
The main advantage of trading using opposite Thunderful Group and Stillfront Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderful Group position performs unexpectedly, Stillfront Group 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 Stillfront Group will offset losses from the drop in Stillfront Group'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 |
| Stillfront Group vs. Flexion Mobile PLC | Stillfront Group vs. iZafe Group AB | Stillfront Group vs. KABE Group AB | Stillfront Group vs. IAR Systems Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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