Correlation Between James Balanced: and Thrivent Moderately
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Thrivent Moderately 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 James Balanced: and Thrivent Moderately into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Thrivent Moderately Aggressive, you can compare the effects of market volatilities on James Balanced: and Thrivent Moderately 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 James Balanced: with a short position of Thrivent Moderately. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Thrivent Moderately.
Diversification Opportunities for James Balanced: and Thrivent Moderately
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between James and Thrivent is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Thrivent Moderately Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderately and James Balanced: 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 James Balanced Golden are associated (or correlated) with Thrivent Moderately. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderately has no effect on the direction of James Balanced: i.e., James Balanced: and Thrivent Moderately go up and down completely randomly.
Pair Corralation between James Balanced: and Thrivent Moderately
Assuming the 90 days horizon James Balanced: is expected to generate 1.91 times less return on investment than Thrivent Moderately. But when comparing it to its historical volatility, James Balanced Golden is 1.38 times less risky than Thrivent Moderately. It trades about 0.13 of its potential returns per unit of risk. Thrivent Moderately Aggressive is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,823 in Thrivent Moderately Aggressive on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Thrivent Moderately Aggressive or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Thrivent Moderately Aggressive
Performance |
| Timeline |
| James Balanced Golden |
| Thrivent Moderately |
James Balanced: and Thrivent Moderately Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Thrivent Moderately
The main advantage of trading using opposite James Balanced: and Thrivent Moderately positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Thrivent Moderately 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 Moderately will offset losses from the drop in Thrivent Moderately's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Thrivent Moderately vs. Europac Gold Fund | Thrivent Moderately vs. James Balanced Golden | Thrivent Moderately vs. International Investors Gold | Thrivent Moderately vs. Fidelity Advisor Gold |
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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