Correlation Between Thrivent High and Frost Total
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Frost Total 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 Frost Total 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 Frost Total Return, you can compare the effects of market volatilities on Thrivent High and Frost Total 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 Frost Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Frost Total.
Diversification Opportunities for Thrivent High and Frost Total
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Frost is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Frost Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Total Return 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 Frost Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Total Return has no effect on the direction of Thrivent High i.e., Thrivent High and Frost Total go up and down completely randomly.
Pair Corralation between Thrivent High and Frost Total
Assuming the 90 days horizon Thrivent High is expected to generate 1.1 times less return on investment than Frost Total. But when comparing it to its historical volatility, Thrivent High Yield is 1.85 times less risky than Frost Total. It trades about 0.16 of its potential returns per unit of risk. Frost Total Return is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 979.00 in Frost Total Return on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Frost Total Return or generate 0.51% 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. Frost Total Return
Performance |
| Timeline |
| Thrivent High Yield |
| Frost Total Return |
Thrivent High and Frost Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Frost Total
The main advantage of trading using opposite Thrivent High and Frost Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Frost Total 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 Frost Total will offset losses from the drop in Frost Total'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 |
| Frost Total vs. Baird Intermediate Bond | Frost Total vs. Kopernik Global All Cap | Frost Total vs. Invesco Real Estate | Frost Total vs. Oppenheimer Steelpath Mlp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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