Correlation Between Thrivent High and FutureTech
Can any of the company-specific risk be diversified away by investing in both Thrivent High and FutureTech 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 FutureTech 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 FutureTech II Acquisition, you can compare the effects of market volatilities on Thrivent High and FutureTech 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 FutureTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and FutureTech.
Diversification Opportunities for Thrivent High and FutureTech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and FutureTech is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and FutureTech II Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FutureTech II Acquisition 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 FutureTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FutureTech II Acquisition has no effect on the direction of Thrivent High i.e., Thrivent High and FutureTech go up and down completely randomly.
Pair Corralation between Thrivent High and FutureTech
Assuming the 90 days horizon Thrivent High is expected to generate 501.87 times less return on investment than FutureTech. But when comparing it to its historical volatility, Thrivent High Yield is 756.86 times less risky than FutureTech. It trades about 0.23 of its potential returns per unit of risk. FutureTech II Acquisition is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3.00 in FutureTech II Acquisition on September 13, 2024 and sell it today you would lose (1.25) from holding FutureTech II Acquisition or give up 41.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.13% |
| Values | Daily Returns |
Thrivent High Yield vs. FutureTech II Acquisition
Performance |
| Timeline |
| Thrivent High Yield |
| FutureTech II Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Thrivent High and FutureTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and FutureTech
The main advantage of trading using opposite Thrivent High and FutureTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, FutureTech 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 FutureTech will offset losses from the drop in FutureTech'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 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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