Correlation Between IShares Russell and Thrivent ETF
Can any of the company-specific risk be diversified away by investing in both IShares Russell and Thrivent ETF 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 IShares Russell and Thrivent ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Russell Mid Cap and Thrivent ETF Trust, you can compare the effects of market volatilities on IShares Russell and Thrivent ETF 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 IShares Russell with a short position of Thrivent ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Russell and Thrivent ETF.
Diversification Opportunities for IShares Russell and Thrivent ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and Thrivent is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding iShares Russell Mid Cap and Thrivent ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent ETF Trust and IShares Russell 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 iShares Russell Mid Cap are associated (or correlated) with Thrivent ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent ETF Trust has no effect on the direction of IShares Russell i.e., IShares Russell and Thrivent ETF go up and down completely randomly.
Pair Corralation between IShares Russell and Thrivent ETF
Considering the 90-day investment horizon IShares Russell is expected to generate 1.21 times less return on investment than Thrivent ETF. But when comparing it to its historical volatility, iShares Russell Mid Cap is 1.27 times less risky than Thrivent ETF. It trades about 0.07 of its potential returns per unit of risk. Thrivent ETF Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,761 in Thrivent ETF Trust on August 23, 2024 and sell it today you would earn a total of 1,086 from holding Thrivent ETF Trust or generate 39.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Russell Mid Cap vs. Thrivent ETF Trust
Performance |
| Timeline |
| iShares Russell Mid |
| Thrivent ETF Trust |
IShares Russell and Thrivent ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Russell and Thrivent ETF
The main advantage of trading using opposite IShares Russell and Thrivent ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Russell position performs unexpectedly, Thrivent ETF 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 ETF will offset losses from the drop in Thrivent ETF's long position.| IShares Russell vs. iShares Russell Mid Cap | IShares Russell vs. iShares Russell 1000 | IShares Russell vs. iShares Russell Mid Cap | IShares Russell vs. iShares Russell 3000 |
| Thrivent ETF vs. Vanguard Mid Cap Index | Thrivent ETF vs. Vanguard Extended Market | Thrivent ETF vs. iShares Core SP | Thrivent ETF vs. iShares Russell Mid 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |