Correlation Between Aberdeen Emerging and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Aberdeen Emerging 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 Aberdeen Emerging and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Emerging Markets and Thrivent High Yield, you can compare the effects of market volatilities on Aberdeen Emerging 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 Aberdeen Emerging with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Emerging and Thrivent High.
Diversification Opportunities for Aberdeen Emerging and Thrivent High
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aberdeen and Thrivent is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Emerging Markets 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 Aberdeen Emerging 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 Aberdeen Emerging Markets 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 Aberdeen Emerging i.e., Aberdeen Emerging and Thrivent High go up and down completely randomly.
Pair Corralation between Aberdeen Emerging and Thrivent High
Assuming the 90 days horizon Aberdeen Emerging Markets is expected to under-perform the Thrivent High. In addition to that, Aberdeen Emerging is 5.57 times more volatile than Thrivent High Yield. It trades about -0.08 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.22 per unit of volatility. If you would invest 423.00 in Thrivent High Yield on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Thrivent High Yield or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aberdeen Emerging Markets vs. Thrivent High Yield
Performance |
| Timeline |
| Aberdeen Emerging Markets |
| Thrivent High Yield |
Aberdeen Emerging and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Emerging and Thrivent High
The main advantage of trading using opposite Aberdeen Emerging and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Emerging 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.| Aberdeen Emerging vs. Aberdeen Emerging Markets | Aberdeen Emerging vs. Aberdeen Emerging Markets | Aberdeen Emerging vs. Aberdeen Gbl Eq | Aberdeen Emerging vs. Aberdeen Gbl Eq |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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