Correlation Between Ab Bond and Thrivent Income
Can any of the company-specific risk be diversified away by investing in both Ab Bond 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 Ab Bond and Thrivent Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Thrivent Income Fund, you can compare the effects of market volatilities on Ab Bond 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 Ab Bond with a short position of Thrivent Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Thrivent Income.
Diversification Opportunities for Ab Bond and Thrivent Income
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ABNTX and Thrivent is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Thrivent Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Income and Ab Bond 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 Ab Bond Inflation 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 Ab Bond i.e., Ab Bond and Thrivent Income go up and down completely randomly.
Pair Corralation between Ab Bond and Thrivent Income
Assuming the 90 days horizon Ab Bond is expected to generate 1.26 times less return on investment than Thrivent Income. But when comparing it to its historical volatility, Ab Bond Inflation is 1.61 times less risky than Thrivent Income. It trades about 0.37 of its potential returns per unit of risk. Thrivent Income Fund is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 806.00 in Thrivent Income Fund on November 29, 2024 and sell it today you would earn a total of 15.00 from holding Thrivent Income Fund or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Thrivent Income Fund
Performance |
| Timeline |
| Ab Bond Inflation |
| Thrivent Income |
Ab Bond and Thrivent Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Thrivent Income
The main advantage of trading using opposite Ab Bond and Thrivent Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond 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.| Ab Bond vs. Siit High Yield | Ab Bond vs. Pace High Yield | Ab Bond vs. Access Flex High | Ab Bond vs. Alpine High Yield |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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