Correlation Between Thrivent High and Dimensional International
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Dimensional International 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 Dimensional International 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 Dimensional International High, you can compare the effects of market volatilities on Thrivent High and Dimensional International 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 Dimensional International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Dimensional International.
Diversification Opportunities for Thrivent High and Dimensional International
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Dimensional is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Dimensional International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional International 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 Dimensional International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional International has no effect on the direction of Thrivent High i.e., Thrivent High and Dimensional International go up and down completely randomly.
Pair Corralation between Thrivent High and Dimensional International
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.19 times more return on investment than Dimensional International. However, Thrivent High Yield is 5.32 times less risky than Dimensional International. It trades about 0.15 of its potential returns per unit of risk. Dimensional International High is currently generating about -0.06 per unit of risk. If you would invest 420.00 in Thrivent High Yield on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Thrivent High Yield or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Dimensional International High
Performance |
| Timeline |
| Thrivent High Yield |
| Dimensional International |
Thrivent High and Dimensional International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Dimensional International
The main advantage of trading using opposite Thrivent High and Dimensional International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Dimensional International 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 Dimensional International will offset losses from the drop in Dimensional International'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 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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