Correlation Between Thrivent High and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Xtrackers MSCI 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 Xtrackers MSCI 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 Xtrackers MSCI EAFE, you can compare the effects of market volatilities on Thrivent High and Xtrackers MSCI 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 Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Xtrackers MSCI.
Diversification Opportunities for Thrivent High and Xtrackers MSCI
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Xtrackers is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Xtrackers MSCI EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI EAFE 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 Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI EAFE has no effect on the direction of Thrivent High i.e., Thrivent High and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between Thrivent High and Xtrackers MSCI
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.16 times more return on investment than Xtrackers MSCI. However, Thrivent High Yield is 6.09 times less risky than Xtrackers MSCI. It trades about 0.15 of its potential returns per unit of risk. Xtrackers MSCI EAFE is currently generating about -0.07 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. Xtrackers MSCI EAFE
Performance |
| Timeline |
| Thrivent High Yield |
| Xtrackers MSCI EAFE |
Thrivent High and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Xtrackers MSCI
The main advantage of trading using opposite Thrivent High and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Xtrackers MSCI 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI'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 |
| Xtrackers MSCI vs. iShares ESG Aggregate | Xtrackers MSCI vs. SPDR MSCI Emerging | Xtrackers MSCI vs. Aquagold International | Xtrackers MSCI 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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