Correlation Between Thrivent High and Country Garden
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Country Garden 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 Country Garden 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 Country Garden Holdings, you can compare the effects of market volatilities on Thrivent High and Country Garden 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 Country Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Country Garden.
Diversification Opportunities for Thrivent High and Country Garden
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Country is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Country Garden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Garden Holdings 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 Country Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Garden Holdings has no effect on the direction of Thrivent High i.e., Thrivent High and Country Garden go up and down completely randomly.
Pair Corralation between Thrivent High and Country Garden
Assuming the 90 days horizon Thrivent High is expected to generate 38.39 times less return on investment than Country Garden. But when comparing it to its historical volatility, Thrivent High Yield is 73.27 times less risky than Country Garden. It trades about 0.11 of its potential returns per unit of risk. Country Garden Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Country Garden Holdings on September 2, 2024 and sell it today you would lose (21.00) from holding Country Garden Holdings or give up 53.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.45% |
| Values | Daily Returns |
Thrivent High Yield vs. Country Garden Holdings
Performance |
| Timeline |
| Thrivent High Yield |
| Country Garden Holdings |
Thrivent High and Country Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Country Garden
The main advantage of trading using opposite Thrivent High and Country Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Country Garden 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 Country Garden will offset losses from the drop in Country Garden'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 |
| Country Garden vs. HUMANA INC | Country Garden vs. SCOR PK | Country Garden vs. Aquagold International | Country Garden vs. Thrivent High Yield |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |