Correlation Between Thrivent High and Golden Star
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Golden Star 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 Golden Star 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 Golden Star Acquisition, you can compare the effects of market volatilities on Thrivent High and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Golden Star.
Diversification Opportunities for Thrivent High and Golden Star
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Golden is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Thrivent High i.e., Thrivent High and Golden Star go up and down completely randomly.
Pair Corralation between Thrivent High and Golden Star
Assuming the 90 days horizon Thrivent High is expected to generate 3.54 times less return on investment than Golden Star. But when comparing it to its historical volatility, Thrivent High Yield is 5.3 times less risky than Golden Star. It trades about 0.08 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Golden Star Acquisition on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Golden Star Acquisition or generate 0.79% 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. Golden Star Acquisition
Performance |
| Timeline |
| Thrivent High Yield |
| Golden Star Acquisition |
Thrivent High and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Golden Star
The main advantage of trading using opposite Thrivent High and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star'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 |
| Golden Star vs. HUMANA INC | Golden Star vs. Barloworld Ltd ADR | Golden Star vs. Morningstar Unconstrained Allocation | Golden Star 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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