Correlation Between Thayer Ventures and Workday

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

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

Diversification Opportunities for Thayer Ventures and Workday

-0.4

Correlation Coefficient

Thayer Ventures  Workday

Very good diversification

The 3 months correlation between Thayer and Workday is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday and Thayer Ventures 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 Thayer Ventures Acquisition are associated (or correlated) with Workday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workday has no effect on the direction of Thayer Ventures i.e., Thayer Ventures and Workday go up and down completely randomly.

Pair Corralation between Thayer Ventures and Workday

Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 10.67 times more return on investment than Workday. However, Thayer Ventures is 10.67 times more volatile than Workday. It trades about 0.07 of its potential returns per unit of risk. Workday is currently generating about 0.06 per unit of risk. If you would invest  8.80  in Thayer Ventures Acquisition on September 20, 2024 and sell it today you would lose (8.00) from holding Thayer Ventures Acquisition or give up 90.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Thayer Ventures Acquisition  vs.  Workday

Thayer Ventures Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thayer Ventures Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Workday

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Workday are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Workday may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Thayer Ventures and Workday

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

The idea behind Thayer Ventures Acquisition and Workday 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.