Correlation Between 70082LAB3 and Thayer Ventures

Can any of the company-specific risk be diversified away by investing in both 70082LAB3 and Thayer Ventures 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 70082LAB3 and Thayer Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US70082LAB36 and Thayer Ventures Acquisition, you can compare the effects of market volatilities on 70082LAB3 and Thayer Ventures 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 70082LAB3 with a short position of Thayer Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and Thayer Ventures.

Diversification Opportunities for 70082LAB3 and Thayer Ventures

-0.45

Correlation Coefficient

70082LAB3  Thayer Ventures

Very good diversification

The 3 months correlation between 70082LAB3 and Thayer is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and Thayer Ventures Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thayer Ventures Acqu and 70082LAB3 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 US70082LAB36 are associated (or correlated) with Thayer Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thayer Ventures Acqu has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and Thayer Ventures go up and down completely randomly.

Pair Corralation between 70082LAB3 and Thayer Ventures

Assuming the 90 days trading horizon US70082LAB36 is expected to under-perform the Thayer Ventures. But the bond apears to be less risky and, when comparing its historical volatility, US70082LAB36 is 10.96 times less risky than Thayer Ventures. The bond trades about -0.04 of its potential returns per unit of risk. The Thayer Ventures Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1.20  in Thayer Ventures Acquisition on September 23, 2024 and sell it today you would lose (0.20) from holding Thayer Ventures Acquisition or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	80.95%
Values	Daily Returns

US70082LAB36  vs.  Thayer Ventures Acquisition

US70082LAB36

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in US70082LAB36 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 70082LAB3 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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 fairly uncertain basic indicators, Thayer Ventures may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with 70082LAB3 and Thayer Ventures

The main advantage of trading using opposite 70082LAB3 and Thayer Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 position performs unexpectedly, Thayer Ventures 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 Thayer Ventures will offset losses from the drop in Thayer Ventures' long position.

The idea behind US70082LAB36 and Thayer Ventures Acquisition 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.