Correlation Between THG Plc and Card Factory

Can any of the company-specific risk be diversified away by investing in both THG Plc and Card Factory 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 THG Plc and Card Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between THG Plc and Card Factory plc, you can compare the effects of market volatilities on THG Plc and Card Factory 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 THG Plc with a short position of Card Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of THG Plc and Card Factory.

Diversification Opportunities for THG Plc and Card Factory

0.0

Correlation Coefficient

THG Plc  Card Factory

Pay attention - limited upside

The 3 months correlation between THG and Card is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THG Plc and Card Factory plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Card Factory plc and THG Plc 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 THG Plc are associated (or correlated) with Card Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Card Factory plc has no effect on the direction of THG Plc i.e., THG Plc and Card Factory go up and down completely randomly.

Pair Corralation between THG Plc and Card Factory

If you would invest  28.00  in THG Plc on October 8, 2025 and sell it today you would earn a total of  0.00  from holding THG Plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

THG Plc  vs.  Card Factory plc

THG Plc

Risk-Adjusted Performance

Weakest

Over the last 90 days THG Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, THG Plc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Card Factory plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Card Factory plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with THG Plc and Card Factory

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

The idea behind THG Plc and Card Factory plc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.