Correlation Between SPDR DoubleLine and Thrivent High
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine 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 SPDR DoubleLine and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR DoubleLine Emerging and Thrivent High Yield, you can compare the effects of market volatilities on SPDR DoubleLine 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 SPDR DoubleLine with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Thrivent High.
Diversification Opportunities for SPDR DoubleLine and Thrivent High
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Thrivent is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Emerging 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 SPDR DoubleLine 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 SPDR DoubleLine Emerging 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 SPDR DoubleLine i.e., SPDR DoubleLine and Thrivent High go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Thrivent High
Given the investment horizon of 90 days SPDR DoubleLine is expected to generate 1.2 times less return on investment than Thrivent High. But when comparing it to its historical volatility, SPDR DoubleLine Emerging is 1.27 times less risky than Thrivent High. It trades about 0.14 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Thrivent High Yield on August 26, 2024 and sell it today you would earn a total of 56.00 from holding Thrivent High Yield or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR DoubleLine Emerging vs. Thrivent High Yield
Performance |
| Timeline |
| SPDR DoubleLine Emerging |
| Thrivent High Yield |
SPDR DoubleLine and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Thrivent High
The main advantage of trading using opposite SPDR DoubleLine and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine 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.| SPDR DoubleLine vs. iShares JP Morgan | SPDR DoubleLine vs. Invesco Emerging Markets | SPDR DoubleLine vs. iShares JP Morgan | SPDR DoubleLine vs. iShares JP Morgan |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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