Correlation Between 10X Capital and Thunder Bridge

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Can any of the company-specific risk be diversified away by investing in both 10X Capital and Thunder Bridge 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 10X Capital and Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 10X Capital Venture and Thunder Bridge Capital, you can compare the effects of market volatilities on 10X Capital and Thunder Bridge 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 10X Capital with a short position of Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Capital and Thunder Bridge.

Diversification Opportunities for 10X Capital and Thunder Bridge

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between 10X and Thunder is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding 10X Capital Venture and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital and 10X Capital 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 10X Capital Venture are associated (or correlated) with Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of 10X Capital i.e., 10X Capital and Thunder Bridge go up and down completely randomly.

Pair Corralation between 10X Capital and Thunder Bridge

If you would invest  249.00  in Thunder Bridge Capital on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Thunder Bridge Capital or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

10X Capital Venture  vs.  Thunder Bridge Capital

 Performance 
       Timeline  
10X Capital Venture 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days 10X Capital Venture has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, 10X Capital is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Thunder Bridge Capital 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Solid
Over the last 90 days Thunder Bridge Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal basic indicators, Thunder Bridge showed solid returns over the last few months and may actually be approaching a breakup point.

10X Capital and Thunder Bridge Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 10X Capital and Thunder Bridge

The main advantage of trading using opposite 10X Capital and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Capital position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.
The idea behind 10X Capital Venture and Thunder Bridge Capital 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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