Correlation Between Thrivent High and Graco
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Graco 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 Graco 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 Graco Inc, you can compare the effects of market volatilities on Thrivent High and Graco 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 Graco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Graco.
Diversification Opportunities for Thrivent High and Graco
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Graco is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Graco Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graco Inc 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 Graco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graco Inc has no effect on the direction of Thrivent High i.e., Thrivent High and Graco go up and down completely randomly.
Pair Corralation between Thrivent High and Graco
Assuming the 90 days horizon Thrivent High is expected to generate 15.36 times less return on investment than Graco. But when comparing it to its historical volatility, Thrivent High Yield is 9.95 times less risky than Graco. It trades about 0.21 of its potential returns per unit of risk. Graco Inc is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 8,145 in Graco Inc on August 29, 2024 and sell it today you would earn a total of 916.00 from holding Graco Inc or generate 11.25% 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. Graco Inc
Performance |
| Timeline |
| Thrivent High Yield |
| Graco Inc |
Thrivent High and Graco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Graco
The main advantage of trading using opposite Thrivent High and Graco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Graco 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 Graco will offset losses from the drop in Graco'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 |
| Graco vs. Aquagold International | Graco vs. Morningstar Unconstrained Allocation | Graco vs. High Yield Municipal Fund | Graco 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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