Correlation Between Thrivent High and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Fidelity Freedom 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 Fidelity Freedom 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 Fidelity Freedom 2020, you can compare the effects of market volatilities on Thrivent High and Fidelity Freedom 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 Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Fidelity Freedom.
Diversification Opportunities for Thrivent High and Fidelity Freedom
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thrivent and Fidelity is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Fidelity Freedom 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom 2020 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 Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom 2020 has no effect on the direction of Thrivent High i.e., Thrivent High and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Thrivent High and Fidelity Freedom
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.48 times more return on investment than Fidelity Freedom. However, Thrivent High Yield is 2.09 times less risky than Fidelity Freedom. It trades about 0.15 of its potential returns per unit of risk. Fidelity Freedom 2020 is currently generating about 0.05 per unit of risk. If you would invest 394.00 in Thrivent High Yield on October 22, 2024 and sell it today you would earn a total of 30.00 from holding Thrivent High Yield or generate 7.61% 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. Fidelity Freedom 2020
Performance |
| Timeline |
| Thrivent High Yield |
| Fidelity Freedom 2020 |
Thrivent High and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Fidelity Freedom
The main advantage of trading using opposite Thrivent High and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Fidelity Freedom 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 Fidelity Freedom will offset losses from the drop in Fidelity Freedom'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 |
| Fidelity Freedom vs. Tiaa Cref Lifestyle Moderate | Fidelity Freedom vs. Putnman Retirement Ready | Fidelity Freedom vs. Blackrock Moderate Prepared | Fidelity Freedom vs. Tiaa Cref Lifestyle Moderate |
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.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |