Correlation Between Thrivent High and Ford
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Ford 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 Ford 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 Ford Motor, you can compare the effects of market volatilities on Thrivent High and Ford 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 Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Ford.
Diversification Opportunities for Thrivent High and Ford
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and Ford is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Thrivent High i.e., Thrivent High and Ford go up and down completely randomly.
Pair Corralation between Thrivent High and Ford
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.13 times more return on investment than Ford. However, Thrivent High Yield is 7.48 times less risky than Ford. It trades about -0.28 of its potential returns per unit of risk. Ford Motor is currently generating about -0.27 per unit of risk. If you would invest 427.00 in Thrivent High Yield on October 10, 2024 and sell it today you would lose (5.00) from holding Thrivent High Yield or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Ford Motor
Performance |
| Timeline |
| Thrivent High Yield |
| Ford Motor |
Thrivent High and Ford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Ford
The main advantage of trading using opposite Thrivent High and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Ford 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 Ford will offset losses from the drop in Ford'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 |
| Ford vs. Canoo Inc | Ford vs. Aquagold International | Ford vs. Morningstar Unconstrained Allocation | Ford 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |