Correlation Between Thor Industries and Apple
Can any of the company-specific risk be diversified away by investing in both Thor Industries and Apple 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 Thor Industries and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and Apple Inc, you can compare the effects of market volatilities on Thor Industries and Apple 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 Thor Industries with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and Apple.
Diversification Opportunities for Thor Industries and Apple
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thor and Apple is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Thor Industries 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 Thor Industries are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Thor Industries i.e., Thor Industries and Apple go up and down completely randomly.
Pair Corralation between Thor Industries and Apple
Considering the 90-day investment horizon Thor Industries is expected to under-perform the Apple. In addition to that, Thor Industries is 1.41 times more volatile than Apple Inc. It trades about -0.28 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.02 per unit of volatility. If you would invest 16,884 in Apple Inc on February 2, 2024 and sell it today you would earn a total of 46.00 from holding Apple Inc or generate 0.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Thor Industries vs. Apple Inc
Performance |
Timeline |
Thor Industries |
Apple Inc |
Thor Industries and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thor Industries and Apple
The main advantage of trading using opposite Thor Industries and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.Thor Industries vs. Twin Vee Powercats | Thor Industries vs. Curtiss Motorcycles | Thor Industries vs. Marine Products | Thor Industries vs. MCBC Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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