Correlation Between American Beacon and Thrivent Income
Can any of the company-specific risk be diversified away by investing in both American Beacon and Thrivent Income 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 American Beacon and Thrivent Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon The and Thrivent Income Fund, you can compare the effects of market volatilities on American Beacon and Thrivent Income 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 American Beacon with a short position of Thrivent Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Thrivent Income.
Diversification Opportunities for American Beacon and Thrivent Income
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Thrivent is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon The and Thrivent Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Income and American Beacon 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 American Beacon The are associated (or correlated) with Thrivent Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Income has no effect on the direction of American Beacon i.e., American Beacon and Thrivent Income go up and down completely randomly.
Pair Corralation between American Beacon and Thrivent Income
Assuming the 90 days horizon American Beacon The is expected to generate 1.69 times more return on investment than Thrivent Income. However, American Beacon is 1.69 times more volatile than Thrivent Income Fund. It trades about 0.36 of its potential returns per unit of risk. Thrivent Income Fund is currently generating about 0.14 per unit of risk. If you would invest 2,336 in American Beacon The on September 3, 2024 and sell it today you would earn a total of 106.00 from holding American Beacon The or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon The vs. Thrivent Income Fund
Performance |
| Timeline |
| American Beacon |
| Thrivent Income |
American Beacon and Thrivent Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Thrivent Income
The main advantage of trading using opposite American Beacon and Thrivent Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Thrivent Income 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 Thrivent Income will offset losses from the drop in Thrivent Income's long position.| American Beacon vs. Vanguard Small Cap Value | American Beacon vs. Royce Opportunity Fund | American Beacon vs. Amg River Road | American Beacon vs. Pace Smallmedium Value |
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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