Correlation Between Thunder Power and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both Thunder Power and Dairy Farm 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 Power and Dairy Farm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thunder Power Holdings, and Dairy Farm International, you can compare the effects of market volatilities on Thunder Power and Dairy Farm 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 Power with a short position of Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Power and Dairy Farm.
Diversification Opportunities for Thunder Power and Dairy Farm
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thunder and Dairy is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Power Holdings, and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International and Thunder Power 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 Power Holdings, are associated (or correlated) with Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of Thunder Power i.e., Thunder Power and Dairy Farm go up and down completely randomly.
Pair Corralation between Thunder Power and Dairy Farm
If you would invest 13.00 in Thunder Power Holdings, on September 6, 2025 and sell it today you would lose (1.00) from holding Thunder Power Holdings, or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Power Holdings, vs. Dairy Farm International
Performance |
| Timeline |
| Thunder Power Holdings, |
| Dairy Farm International |
Thunder Power and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Power and Dairy Farm
The main advantage of trading using opposite Thunder Power and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Power position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| Thunder Power vs. CarsalesCom Ltd ADR | Thunder Power vs. Commercial Vehicle Group | Thunder Power vs. NuRAN Wireless | Thunder Power vs. High Performance Beverages |
| Dairy Farm vs. Kroger Company | Dairy Farm vs. Seven i Holdings | Dairy Farm vs. Seven i Holdings | Dairy Farm vs. Woolworths Group Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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