Correlation Between Thunder Bridge and Keyarch Acquisition

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

Diversification Opportunities for Thunder Bridge and Keyarch Acquisition

0.14

Correlation Coefficient

Thunder Bridge  Keyarch Acquisition

Average diversification

The 3 months correlation between Thunder and Keyarch is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Bridge Capital and Keyarch Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyarch Acquisition 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 Keyarch Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyarch Acquisition has no effect on the direction of Thunder Bridge i.e., Thunder Bridge and Keyarch Acquisition go up and down completely randomly.

Pair Corralation between Thunder Bridge and Keyarch Acquisition

If you would invest  1,050  in Thunder Bridge Capital on September 12, 2024 and sell it today you would earn a total of  192.00  from holding Thunder Bridge Capital or generate 18.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Thunder Bridge Capital  vs.  Keyarch Acquisition

Thunder Bridge Capital

Risk-Adjusted Performance

7 of 100

OK

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

Keyarch Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Keyarch Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Keyarch Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Thunder Bridge and Keyarch Acquisition

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

The idea behind Thunder Bridge Capital and Keyarch 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.