Correlation Between Armada Hflr and Thunder Bridge

Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Armada Hflr Pr and Thunder Bridge Capital, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Thunder Bridge.

Diversification Opportunities for Armada Hflr and Thunder Bridge

0.0

Correlation Coefficient

Armada Hflr  Thunder Bridge

Pay attention - limited upside

The 3 months correlation between Armada and Thunder is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Thunder Bridge go up and down completely randomly.

Pair Corralation between Armada Hflr and Thunder Bridge

Considering the 90-day investment horizon Armada Hflr is expected to generate 12.24 times less return on investment than Thunder Bridge. In addition to that, Armada Hflr is 3.54 times more volatile than Thunder Bridge Capital. It trades about 0.0 of its total potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.09 per unit of volatility. If you would invest  990.00  in Thunder Bridge Capital on October 7, 2024 and sell it today you would earn a total of  52.00  from holding Thunder Bridge Capital or generate 5.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	26.21%
Values	Daily Returns

Armada Hflr Pr  vs.  Thunder Bridge Capital

Armada Hflr Pr

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Armada Hflr Pr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Armada Hflr is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Thunder Bridge Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thunder Bridge Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Thunder Bridge is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Armada Hflr and Thunder Bridge

The main advantage of trading using opposite Armada Hflr and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.

The idea behind Armada Hflr Pr and Thunder Bridge Capital 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.