Correlation Between BCECN and Thor Industries
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By analyzing existing cross correlation between BCECN 365 17 MAR 51 and Thor Industries, you can compare the effects of market volatilities on BCECN and Thor Industries 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 BCECN with a short position of Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCECN and Thor Industries.
Diversification Opportunities for BCECN and Thor Industries
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BCECN and Thor is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding BCECN 365 17 MAR 51 and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and BCECN 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 BCECN 365 17 MAR 51 are associated (or correlated) with Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of BCECN i.e., BCECN and Thor Industries go up and down completely randomly.
Pair Corralation between BCECN and Thor Industries
Assuming the 90 days trading horizon BCECN 365 17 MAR 51 is expected to generate 1.28 times more return on investment than Thor Industries. However, BCECN is 1.28 times more volatile than Thor Industries. It trades about 0.01 of its potential returns per unit of risk. Thor Industries is currently generating about 0.01 per unit of risk. If you would invest 7,519 in BCECN 365 17 MAR 51 on September 12, 2024 and sell it today you would earn a total of 46.00 from holding BCECN 365 17 MAR 51 or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 48.01% |
| Values | Daily Returns |
BCECN 365 17 MAR 51 vs. Thor Industries
Performance |
| Timeline |
| BCECN 365 17 |
| Thor Industries |
BCECN and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCECN and Thor Industries
The main advantage of trading using opposite BCECN and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCECN position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' long position.The idea behind BCECN 365 17 MAR 51 and Thor Industries 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.| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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