Correlation Between Fortinet and Thunderbird Entertainment

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

By analyzing existing cross correlation between Fortinet and Thunderbird Entertainment Group, you can compare the effects of market volatilities on Fortinet and Thunderbird Entertainment 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 Fortinet with a short position of Thunderbird Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and Thunderbird Entertainment.

Diversification Opportunities for Fortinet and Thunderbird Entertainment

-0.09

Correlation Coefficient

Fortinet  Thunderbird Entertainment

Good diversification

The 3 months correlation between Fortinet and Thunderbird is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and Thunderbird Entertainment Grou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunderbird Entertainment and Fortinet 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 Fortinet are associated (or correlated) with Thunderbird Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunderbird Entertainment has no effect on the direction of Fortinet i.e., Fortinet and Thunderbird Entertainment go up and down completely randomly.

Pair Corralation between Fortinet and Thunderbird Entertainment

Given the investment horizon of 90 days Fortinet is expected to generate 0.47 times more return on investment than Thunderbird Entertainment. However, Fortinet is 2.14 times less risky than Thunderbird Entertainment. It trades about 0.14 of its potential returns per unit of risk. Thunderbird Entertainment Group is currently generating about 0.03 per unit of risk. If you would invest  9,532  in Fortinet on December 2, 2024 and sell it today you would earn a total of  1,269  from holding Fortinet or generate 13.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fortinet  vs.  Thunderbird Entertainment Grou

Fortinet

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fortinet are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Fortinet unveiled solid returns over the last few months and may actually be approaching a breakup point.

Thunderbird Entertainment

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thunderbird Entertainment Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Thunderbird Entertainment may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Fortinet and Thunderbird Entertainment

The main advantage of trading using opposite Fortinet and Thunderbird Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, Thunderbird Entertainment 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 Thunderbird Entertainment will offset losses from the drop in Thunderbird Entertainment's long position.

The idea behind Fortinet and Thunderbird Entertainment Group 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..