Correlation Between Thunder Bridge and Else Nutrition

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

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

Diversification Opportunities for Thunder Bridge and Else Nutrition

-0.51

Correlation Coefficient

Thunder Bridge  Else Nutrition

Excellent diversification

The 3 months correlation between Thunder and Else is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings and Thunder Bridge 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 Thunder Bridge Capital are associated (or correlated) with Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and Else Nutrition go up and down completely randomly.

Pair Corralation between Thunder Bridge and Else Nutrition

Given the investment horizon of 90 days Thunder Bridge Capital is expected to generate 0.27 times more return on investment than Else Nutrition. However, Thunder Bridge Capital is 3.71 times less risky than Else Nutrition. It trades about 0.23 of its potential returns per unit of risk. Else Nutrition Holdings is currently generating about 0.05 per unit of risk. If you would invest  1,094  in Thunder Bridge Capital on September 30, 2024 and sell it today you would earn a total of  130.00  from holding Thunder Bridge Capital or generate 11.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	42.86%
Values	Daily Returns

Thunder Bridge Capital  vs.  Else Nutrition Holdings

Thunder Bridge Capital

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Thunder Bridge Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively uncertain fundamental indicators, Thunder Bridge reported solid returns over the last few months and may actually be approaching a breakup point.

Else Nutrition Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Else Nutrition Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Else Nutrition is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Thunder Bridge and Else Nutrition

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

The idea behind Thunder Bridge Capital and Else Nutrition Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.