Correlation Between Dunham High and Thrivent Government
Can any of the company-specific risk be diversified away by investing in both Dunham High and Thrivent Government 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 Dunham High and Thrivent Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham High Yield and Thrivent Government Bond, you can compare the effects of market volatilities on Dunham High and Thrivent Government 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 Dunham High with a short position of Thrivent Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Thrivent Government.
Diversification Opportunities for Dunham High and Thrivent Government
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dunham and Thrivent is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Thrivent Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Government Bond and Dunham High 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 Dunham High Yield are associated (or correlated) with Thrivent Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Government Bond has no effect on the direction of Dunham High i.e., Dunham High and Thrivent Government go up and down completely randomly.
Pair Corralation between Dunham High and Thrivent Government
Assuming the 90 days horizon Dunham High Yield is expected to generate 0.63 times more return on investment than Thrivent Government. However, Dunham High Yield is 1.59 times less risky than Thrivent Government. It trades about 0.41 of its potential returns per unit of risk. Thrivent Government Bond is currently generating about 0.07 per unit of risk. If you would invest 861.00 in Dunham High Yield on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Dunham High Yield or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Thrivent Government Bond
Performance |
| Timeline |
| Dunham High Yield |
| Thrivent Government Bond |
Dunham High and Thrivent Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Thrivent Government
The main advantage of trading using opposite Dunham High and Thrivent Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Thrivent Government 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 Government will offset losses from the drop in Thrivent Government's long position.| Dunham High vs. Franklin Moderate Allocation | Dunham High vs. Upright Assets Allocation | Dunham High vs. Growth Allocation Fund | Dunham High vs. Guidemark Large Cap |
| Thrivent Government vs. Environment And Alternative | Thrivent Government vs. Goldman Sachs Mlp | Thrivent Government vs. Transamerica Mlp Energy | Thrivent Government vs. Virtus Select Mlp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |