Correlation Between Victory Capital and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Victory Capital and Thunder Bridge 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 Victory Capital and Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and Thunder Bridge Capital, you can compare the effects of market volatilities on Victory Capital and Thunder Bridge 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 Victory Capital with a short position of Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and Thunder Bridge.
Diversification Opportunities for Victory Capital and Thunder Bridge
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Victory and Thunder is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital and Victory Capital 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 Victory Capital Holdings are associated (or correlated) with Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Victory Capital i.e., Victory Capital and Thunder Bridge go up and down completely randomly.
Pair Corralation between Victory Capital and Thunder Bridge
Given the investment horizon of 90 days Victory Capital Holdings is expected to generate 2.48 times more return on investment than Thunder Bridge. However, Victory Capital is 2.48 times more volatile than Thunder Bridge Capital. It trades about 0.25 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.12 per unit of risk. If you would invest 6,121 in Victory Capital Holdings on August 30, 2024 and sell it today you would earn a total of 1,082 from holding Victory Capital Holdings or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Victory Capital Holdings vs. Thunder Bridge Capital
Performance |
| Timeline |
| Victory Capital Holdings |
| Thunder Bridge Capital |
Victory Capital and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and Thunder Bridge
The main advantage of trading using opposite Victory Capital and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| Victory Capital vs. ClimateRock Class A | Victory Capital vs. Oak Woods Acquisition | Victory Capital vs. CF Acquisition VII | Victory Capital vs. DP Cap Acquisition |
| Thunder Bridge vs. Four Leaf Acquisition | Thunder Bridge vs. WinVest Acquisition Corp | Thunder Bridge vs. SK Growth Opportunities | Thunder Bridge vs. Pearl Holdings Acquisition |
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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