Correlation Between Therma Bright and TC Energy
Can any of the company-specific risk be diversified away by investing in both Therma Bright and TC Energy 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 Therma Bright and TC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Therma Bright and TC Energy Corp, you can compare the effects of market volatilities on Therma Bright and TC Energy 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 Therma Bright with a short position of TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Therma Bright and TC Energy.
Diversification Opportunities for Therma Bright and TC Energy
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Therma and TRP-PB is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Therma Bright and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy Corp and Therma Bright 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 Therma Bright are associated (or correlated) with TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Therma Bright i.e., Therma Bright and TC Energy go up and down completely randomly.
Pair Corralation between Therma Bright and TC Energy
Assuming the 90 days trading horizon Therma Bright is expected to under-perform the TC Energy. In addition to that, Therma Bright is 14.8 times more volatile than TC Energy Corp. It trades about -0.01 of its total potential returns per unit of risk. TC Energy Corp is currently generating about 0.14 per unit of volatility. If you would invest 1,321 in TC Energy Corp on September 25, 2024 and sell it today you would earn a total of 104.00 from holding TC Energy Corp or generate 7.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Therma Bright vs. TC Energy Corp
Performance |
Timeline |
Therma Bright |
TC Energy Corp |
Therma Bright and TC Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Therma Bright and TC Energy
The main advantage of trading using opposite Therma Bright and TC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Therma Bright position performs unexpectedly, TC Energy 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 TC Energy will offset losses from the drop in TC Energy's long position.Therma Bright vs. KDA Group | Therma Bright vs. iShares Canadian HYBrid | Therma Bright vs. Altagas Cum Red | Therma Bright vs. European Residential Real |
TC Energy vs. Enbridge | TC Energy vs. Enbridge Pref 3 | TC Energy vs. Enbridge Srs P | TC Energy vs. Enbridge Pref 7 |
Check out your portfolio center.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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |