Correlation Between Thrivent High and Barnes
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Barnes 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 Barnes 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 Barnes Group, you can compare the effects of market volatilities on Thrivent High and Barnes 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 Barnes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Barnes.
Diversification Opportunities for Thrivent High and Barnes
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and Barnes is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group 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 Barnes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Group has no effect on the direction of Thrivent High i.e., Thrivent High and Barnes go up and down completely randomly.
Pair Corralation between Thrivent High and Barnes
Assuming the 90 days horizon Thrivent High is expected to generate 2.05 times less return on investment than Barnes. But when comparing it to its historical volatility, Thrivent High Yield is 7.81 times less risky than Barnes. It trades about 0.11 of its potential returns per unit of risk. Barnes Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,872 in Barnes Group on August 30, 2024 and sell it today you would earn a total of 814.00 from holding Barnes Group or generate 21.02% 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. Barnes Group
Performance |
| Timeline |
| Thrivent High Yield |
| Barnes Group |
Thrivent High and Barnes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Barnes
The main advantage of trading using opposite Thrivent High and Barnes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Barnes 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 Barnes will offset losses from the drop in Barnes' 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 |
| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |