Correlation Between Elfun Diversified and Thrivent Large
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Thrivent Large 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 Elfun Diversified and Thrivent Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and Thrivent Large Cap, you can compare the effects of market volatilities on Elfun Diversified and Thrivent Large 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 Elfun Diversified with a short position of Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Thrivent Large.
Diversification Opportunities for Elfun Diversified and Thrivent Large
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ELFUN and Thrivent is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap and Elfun Diversified 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 Elfun Diversified Fund are associated (or correlated) with Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Thrivent Large go up and down completely randomly.
Pair Corralation between Elfun Diversified and Thrivent Large
Assuming the 90 days horizon Elfun Diversified Fund is expected to under-perform the Thrivent Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Elfun Diversified Fund is 1.03 times less risky than Thrivent Large. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Thrivent Large Cap is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,854 in Thrivent Large Cap on October 22, 2024 and sell it today you would lose (4.00) from holding Thrivent Large Cap or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Thrivent Large Cap
Performance |
| Timeline |
| Elfun Diversified |
| Thrivent Large Cap |
Elfun Diversified and Thrivent Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Thrivent Large
The main advantage of trading using opposite Elfun Diversified and Thrivent Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Thrivent Large 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 Large will offset losses from the drop in Thrivent Large's long position.| Elfun Diversified vs. Wcm Focused Emerging | Elfun Diversified vs. Saat Defensive Strategy | Elfun Diversified vs. Eagle Mlp Strategy | Elfun Diversified vs. Franklin Emerging Market |
| Thrivent Large vs. Small Cap Growth Profund | Thrivent Large vs. Mutual Of America | Thrivent Large vs. Fidelity Small Cap | Thrivent Large vs. Lord Abbett Small |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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