Correlation Between Thrivent High and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Duke Energy 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 Duke Energy 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 Duke Energy, you can compare the effects of market volatilities on Thrivent High and Duke Energy 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 Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Duke Energy.
Diversification Opportunities for Thrivent High and Duke Energy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thrivent and Duke is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Duke Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy 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 Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy has no effect on the direction of Thrivent High i.e., Thrivent High and Duke Energy go up and down completely randomly.
Pair Corralation between Thrivent High and Duke Energy
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.51 times more return on investment than Duke Energy. However, Thrivent High Yield is 1.95 times less risky than Duke Energy. It trades about 0.11 of its potential returns per unit of risk. Duke Energy is currently generating about 0.04 per unit of risk. If you would invest 366.00 in Thrivent High Yield on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Thrivent High Yield or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Duke Energy
Performance |
| Timeline |
| Thrivent High Yield |
| Duke Energy |
Thrivent High and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Duke Energy
The main advantage of trading using opposite Thrivent High and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Duke Energy 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 Duke Energy will offset losses from the drop in Duke Energy's long position.| Thrivent High vs. Thrivent Income Fund | Thrivent High vs. HUMANA INC | Thrivent High vs. SCOR PK | Thrivent High vs. Aquagold International |
| Duke Energy vs. Centrais Eltricas Brasileiras | Duke Energy vs. Nextera Energy | Duke Energy vs. Consumers Energy | Duke Energy vs. CMS Energy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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