Correlation Between Bimini Capital and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Bimini Capital 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 Bimini Capital and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bimini Capital Management and Thrivent High Yield, you can compare the effects of market volatilities on Bimini Capital 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 Bimini Capital with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimini Capital and Thrivent High.
Diversification Opportunities for Bimini Capital and Thrivent High
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bimini and Thrivent is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bimini Capital Management 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 Bimini Capital 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 Bimini Capital Management 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 Bimini Capital i.e., Bimini Capital and Thrivent High go up and down completely randomly.
Pair Corralation between Bimini Capital and Thrivent High
Given the investment horizon of 90 days Bimini Capital Management is expected to generate 25.17 times more return on investment than Thrivent High. However, Bimini Capital is 25.17 times more volatile than Thrivent High Yield. It trades about 0.04 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 100.00 in Bimini Capital Management on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Bimini Capital Management or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bimini Capital Management vs. Thrivent High Yield
Performance |
| Timeline |
| Bimini Capital Management |
| Thrivent High Yield |
Bimini Capital and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimini Capital and Thrivent High
The main advantage of trading using opposite Bimini Capital and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimini Capital 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.| Bimini Capital vs. Western Asset Global | Bimini Capital vs. Invesco Trust For | Bimini Capital vs. Logan Ridge Finance | Bimini Capital vs. Invesco Advantage MIT |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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