Correlation Between Global Medical and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Global Medical 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 Global Medical and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Medical REIT and Thrivent High Yield, you can compare the effects of market volatilities on Global Medical 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 Global Medical with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Medical and Thrivent High.
Diversification Opportunities for Global Medical and Thrivent High
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Thrivent is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Global Medical REIT 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 Global Medical 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 Global Medical REIT 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 Global Medical i.e., Global Medical and Thrivent High go up and down completely randomly.
Pair Corralation between Global Medical and Thrivent High
Assuming the 90 days trading horizon Global Medical is expected to generate 1.01 times less return on investment than Thrivent High. In addition to that, Global Medical is 2.24 times more volatile than Thrivent High Yield. It trades about 0.05 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.11 per unit of volatility. If you would invest 366.00 in Thrivent High Yield on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Thrivent High Yield or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Medical REIT vs. Thrivent High Yield
Performance |
| Timeline |
| Global Medical REIT |
| Thrivent High Yield |
Global Medical and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Medical and Thrivent High
The main advantage of trading using opposite Global Medical and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Medical 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.| Global Medical vs. Global Medical REIT | Global Medical vs. Community Healthcare Trust | Global Medical vs. National Health Investors | Global Medical vs. Healthcare Realty Trust |
| Thrivent High vs. Thrivent Income Fund | Thrivent High vs. HUMANA INC | Thrivent High vs. SCOR PK | Thrivent High vs. Aquagold International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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