Correlation Between Atlanticus Holdings and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings 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 Atlanticus Holdings and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings Corp and Thrivent High Yield, you can compare the effects of market volatilities on Atlanticus Holdings 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 Atlanticus Holdings with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Thrivent High.
Diversification Opportunities for Atlanticus Holdings and Thrivent High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlanticus and Thrivent is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings Corp 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 Atlanticus Holdings 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 Atlanticus Holdings Corp 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 Atlanticus Holdings i.e., Atlanticus Holdings and Thrivent High go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Thrivent High
Assuming the 90 days horizon Atlanticus Holdings Corp is expected to generate 4.65 times more return on investment than Thrivent High. However, Atlanticus Holdings is 4.65 times more volatile than Thrivent High Yield. It trades about 0.34 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 2,281 in Atlanticus Holdings Corp on August 30, 2024 and sell it today you would earn a total of 127.00 from holding Atlanticus Holdings Corp or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlanticus Holdings Corp vs. Thrivent High Yield
Performance |
| Timeline |
| Atlanticus Holdings Corp |
| Thrivent High Yield |
Atlanticus Holdings and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and Thrivent High
The main advantage of trading using opposite Atlanticus Holdings and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings 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.| Atlanticus Holdings vs. Capital One Financial | Atlanticus Holdings vs. Capital One Financial | Atlanticus Holdings vs. Citizens Financial Group | Atlanticus Holdings vs. Wells Fargo |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |