Correlation Between Amg River and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Amg River 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 Amg River and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Thrivent High Yield, you can compare the effects of market volatilities on Amg River 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 Amg River with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Thrivent High.
Diversification Opportunities for Amg River and Thrivent High
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Thrivent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road 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 Amg River 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 Amg River Road 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 Amg River i.e., Amg River and Thrivent High go up and down completely randomly.
Pair Corralation between Amg River and Thrivent High
Assuming the 90 days horizon Amg River Road is expected to generate 5.49 times more return on investment than Thrivent High. However, Amg River is 5.49 times more volatile than Thrivent High Yield. It trades about 0.38 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.27 per unit of risk. If you would invest 1,480 in Amg River Road on August 30, 2024 and sell it today you would earn a total of 108.00 from holding Amg River Road or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Thrivent High Yield
Performance |
| Timeline |
| Amg River Road |
| Thrivent High Yield |
Amg River and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Thrivent High
The main advantage of trading using opposite Amg River and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River 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.| Amg River vs. Champlain Mid Cap | Amg River vs. Johcm Emerging Markets | Amg River vs. Walden Smid Cap | Amg River vs. American Beacon Stephens |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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