Correlation Between Access Power and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Access Power and Thrivent High 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 Access Power and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Power Co and Thrivent High Yield, you can compare the effects of market volatilities on Access Power and Thrivent High 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 Access Power with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Power and Thrivent High.
Diversification Opportunities for Access Power and Thrivent High
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Access and Thrivent is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Access Power Co and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Access 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 Access Power Co are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Access Power i.e., Access Power and Thrivent High go up and down completely randomly.
Pair Corralation between Access Power and Thrivent High
Given the investment horizon of 90 days Access Power Co is expected to generate 99.4 times more return on investment than Thrivent High. However, Access Power is 99.4 times more volatile than Thrivent High Yield. It trades about 0.12 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.11 per unit of risk. If you would invest 0.19 in Access Power Co on September 2, 2024 and sell it today you would lose (0.02) from holding Access Power Co or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Power Co vs. Thrivent High Yield
Performance |
| Timeline |
| Access Power |
| Thrivent High Yield |
Access Power and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Power and Thrivent High
The main advantage of trading using opposite Access Power and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Power position performs unexpectedly, Thrivent High 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 High will offset losses from the drop in Thrivent High's long position.| Access Power vs. BCE Inc | Access Power vs. Axiologix | Access Power vs. Advanced Info Service | Access Power vs. HUMANA INC |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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