Correlation Between Thinkific Labs and Mogo

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

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

Diversification Opportunities for Thinkific Labs and Mogo

-0.72

Correlation Coefficient

Thinkific Labs  Mogo

Pay attention - limited upside

The 3 months correlation between Thinkific and Mogo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Thinkific Labs and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and Thinkific Labs 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 Thinkific Labs are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Thinkific Labs i.e., Thinkific Labs and Mogo go up and down completely randomly.

Pair Corralation between Thinkific Labs and Mogo

Assuming the 90 days trading horizon Thinkific Labs is expected to generate 0.82 times more return on investment than Mogo. However, Thinkific Labs is 1.22 times less risky than Mogo. It trades about 0.09 of its potential returns per unit of risk. Mogo Inc is currently generating about -0.27 per unit of risk. If you would invest  299.00  in Thinkific Labs on December 4, 2024 and sell it today you would earn a total of  34.00  from holding Thinkific Labs or generate 11.37% return on investment over 90 days.

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

Thinkific Labs  vs.  Mogo Inc

Thinkific Labs

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thinkific Labs are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Thinkific Labs displayed solid returns over the last few months and may actually be approaching a breakup point.

Mogo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mogo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Thinkific Labs and Mogo

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

The idea behind Thinkific Labs and Mogo Inc 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.