Correlation Between Thrivent High and International Stock
Can any of the company-specific risk be diversified away by investing in both Thrivent High and International Stock 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 International Stock 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 International Stock Fund, you can compare the effects of market volatilities on Thrivent High and International Stock 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 International Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and International Stock.
Diversification Opportunities for Thrivent High and International Stock
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and International is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and International Stock Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Stock 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 International Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Stock has no effect on the direction of Thrivent High i.e., Thrivent High and International Stock go up and down completely randomly.
Pair Corralation between Thrivent High and International Stock
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.19 times more return on investment than International Stock. However, Thrivent High Yield is 5.17 times less risky than International Stock. It trades about 0.08 of its potential returns per unit of risk. International Stock Fund is currently generating about -0.03 per unit of risk. If you would invest 426.00 in Thrivent High Yield on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Thrivent High Yield or generate 0.23% 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. International Stock Fund
Performance |
| Timeline |
| Thrivent High Yield |
| International Stock |
Thrivent High and International Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and International Stock
The main advantage of trading using opposite Thrivent High and International Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, International Stock 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 International Stock will offset losses from the drop in International Stock'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 |
| International Stock vs. Europacific Growth Fund | International Stock vs. SCOR PK | International Stock vs. Morningstar Unconstrained Allocation | International Stock 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |