Correlation Between Thrivent High and Axos Financial
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Axos Financial 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 Thrivent High and Axos Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Axos Financial, you can compare the effects of market volatilities on Thrivent High and Axos Financial 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 Thrivent High with a short position of Axos Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Axos Financial.
Diversification Opportunities for Thrivent High and Axos Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and Axos is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Axos Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axos Financial and Thrivent High 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 Thrivent High Yield are associated (or correlated) with Axos Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axos Financial has no effect on the direction of Thrivent High i.e., Thrivent High and Axos Financial go up and down completely randomly.
Pair Corralation between Thrivent High and Axos Financial
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.08 times more return on investment than Axos Financial. However, Thrivent High Yield is 13.07 times less risky than Axos Financial. It trades about 0.18 of its potential returns per unit of risk. Axos Financial is currently generating about -0.12 per unit of risk. If you would invest 425.00 in Thrivent High Yield on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Thrivent High Yield or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Axos Financial
Performance |
| Timeline |
| Thrivent High Yield |
| Axos Financial |
Thrivent High and Axos Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Axos Financial
The main advantage of trading using opposite Thrivent High and Axos Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Axos Financial 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 Axos Financial will offset losses from the drop in Axos Financial's long position.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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