Correlation Between Bayview Acquisition and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Bayview Acquisition 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 Bayview Acquisition and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayview Acquisition Corp and Thrivent High Yield, you can compare the effects of market volatilities on Bayview Acquisition 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 Bayview Acquisition with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayview Acquisition and Thrivent High.
Diversification Opportunities for Bayview Acquisition and Thrivent High
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bayview and Thrivent is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition 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 Bayview Acquisition 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 Bayview Acquisition 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 Bayview Acquisition i.e., Bayview Acquisition and Thrivent High go up and down completely randomly.
Pair Corralation between Bayview Acquisition and Thrivent High
Assuming the 90 days horizon Bayview Acquisition Corp is expected to generate 1.21 times more return on investment than Thrivent High. However, Bayview Acquisition is 1.21 times more volatile than Thrivent High Yield. It trades about 0.07 of its potential returns per unit of risk. Thrivent High Yield is currently generating about -0.05 per unit of risk. If you would invest 1,081 in Bayview Acquisition Corp on January 16, 2025 and sell it today you would earn a total of 19.00 from holding Bayview Acquisition Corp or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayview Acquisition Corp vs. Thrivent High Yield
Performance |
| Timeline |
| Bayview Acquisition Corp |
| Thrivent High Yield |
Bayview Acquisition and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayview Acquisition and Thrivent High
The main advantage of trading using opposite Bayview Acquisition and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayview Acquisition 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.| Bayview Acquisition vs. East Africa Metals | Bayview Acquisition vs. Electrovaya Common Shares | Bayview Acquisition vs. Shimmick Common | Bayview Acquisition vs. Catalyst Metals Limited |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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