Correlation Between Thunderbird Entertainment and Slate Office

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

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

Diversification Opportunities for Thunderbird Entertainment and Slate Office

-0.39

Correlation Coefficient

Thunderbird Entertainment  Slate Office

Very good diversification

The 3 months correlation between Thunderbird and Slate is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thunderbird Entertainment Grou and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT and Thunderbird Entertainment 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 Thunderbird Entertainment Group are associated (or correlated) with Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of Thunderbird Entertainment i.e., Thunderbird Entertainment and Slate Office go up and down completely randomly.

Pair Corralation between Thunderbird Entertainment and Slate Office

Assuming the 90 days horizon Thunderbird Entertainment Group is expected to generate 0.44 times more return on investment than Slate Office. However, Thunderbird Entertainment Group is 2.27 times less risky than Slate Office. It trades about 0.03 of its potential returns per unit of risk. Slate Office REIT is currently generating about -0.06 per unit of risk. If you would invest  122.00  in Thunderbird Entertainment Group on October 22, 2024 and sell it today you would earn a total of  4.00  from holding Thunderbird Entertainment Group or generate 3.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Thunderbird Entertainment Grou  vs.  Slate Office REIT

Thunderbird Entertainment

Risk-Adjusted Performance

2 of 100

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 stable basic indicators, Thunderbird Entertainment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Slate Office REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Slate Office REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Thunderbird Entertainment and Slate Office

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

The idea behind Thunderbird Entertainment Group and Slate Office REIT 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.