Correlation Between Thrivent High and BioNexus Gene
Can any of the company-specific risk be diversified away by investing in both Thrivent High and BioNexus Gene 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 BioNexus Gene 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 BioNexus Gene Lab, you can compare the effects of market volatilities on Thrivent High and BioNexus Gene 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 BioNexus Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and BioNexus Gene.
Diversification Opportunities for Thrivent High and BioNexus Gene
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and BioNexus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and BioNexus Gene Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNexus Gene Lab 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 BioNexus Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNexus Gene Lab has no effect on the direction of Thrivent High i.e., Thrivent High and BioNexus Gene go up and down completely randomly.
Pair Corralation between Thrivent High and BioNexus Gene
Assuming the 90 days horizon Thrivent High is expected to generate 1047.62 times less return on investment than BioNexus Gene. But when comparing it to its historical volatility, Thrivent High Yield is 612.37 times less risky than BioNexus Gene. It trades about 0.11 of its potential returns per unit of risk. BioNexus Gene Lab is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,200 in BioNexus Gene Lab on September 2, 2024 and sell it today you would lose (1,177) from holding BioNexus Gene Lab or give up 98.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. BioNexus Gene Lab
Performance |
| Timeline |
| Thrivent High Yield |
| BioNexus Gene Lab |
Thrivent High and BioNexus Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and BioNexus Gene
The main advantage of trading using opposite Thrivent High and BioNexus Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, BioNexus Gene 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 BioNexus Gene will offset losses from the drop in BioNexus Gene's long position.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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