Correlation Between Thunder Bridge and Liquid Avatar

Can any of the company-specific risk be diversified away by investing in both Thunder Bridge and Liquid Avatar 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 Liquid Avatar 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 Liquid Avatar Technologies, you can compare the effects of market volatilities on Thunder Bridge and Liquid Avatar 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 Liquid Avatar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Bridge and Liquid Avatar.

Diversification Opportunities for Thunder Bridge and Liquid Avatar

0.0

Correlation Coefficient

Thunder Bridge  Liquid Avatar

Pay attention - limited upside

The 3 months correlation between Thunder and Liquid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and Liquid Avatar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liquid Avatar Techno 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 Liquid Avatar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquid Avatar Techno has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and Liquid Avatar go up and down completely randomly.

Pair Corralation between Thunder Bridge and Liquid Avatar

If you would invest (100.00) in Thunder Bridge Capital on December 10, 2024 and sell it today you would earn a total of  100.00  from holding Thunder Bridge Capital or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Thunder Bridge Capital  vs.  Liquid Avatar Technologies

Thunder Bridge Capital

Risk-Adjusted Performance

Very Weak

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 invariable fundamental indicators, Thunder Bridge is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Liquid Avatar Techno

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Thunder Bridge and Liquid Avatar

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

The idea behind Thunder Bridge Capital and Liquid Avatar Technologies 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.