Correlation Between Thrivent High and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Eagle Point 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 Eagle Point 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 Eagle Point Credit, you can compare the effects of market volatilities on Thrivent High and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Eagle Point.
Diversification Opportunities for Thrivent High and Eagle Point
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Eagle is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit 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 Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Thrivent High i.e., Thrivent High and Eagle Point go up and down completely randomly.
Pair Corralation between Thrivent High and Eagle Point
Assuming the 90 days horizon Thrivent High is expected to generate 1.63 times less return on investment than Eagle Point. But when comparing it to its historical volatility, Thrivent High Yield is 4.66 times less risky than Eagle Point. It trades about 0.21 of its potential returns per unit of risk. Eagle Point Credit is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,329 in Eagle Point Credit on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Eagle Point Credit or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Eagle Point Credit
Performance |
| Timeline |
| Thrivent High Yield |
| Eagle Point Credit |
Thrivent High and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Eagle Point
The main advantage of trading using opposite Thrivent High and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point'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 |
| Eagle Point vs. Aurora Innovation | Eagle Point vs. HUMANA INC | Eagle Point vs. Aquagold International | Eagle Point vs. Barloworld Ltd ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |