Correlation Between Thrivent High and GreenPower
Can any of the company-specific risk be diversified away by investing in both Thrivent High and GreenPower 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 GreenPower 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 GreenPower Motor, you can compare the effects of market volatilities on Thrivent High and GreenPower 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 GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and GreenPower.
Diversification Opportunities for Thrivent High and GreenPower
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and GreenPower is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor 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 GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of Thrivent High i.e., Thrivent High and GreenPower go up and down completely randomly.
Pair Corralation between Thrivent High and GreenPower
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.05 times more return on investment than GreenPower. However, Thrivent High Yield is 18.66 times less risky than GreenPower. It trades about 0.12 of its potential returns per unit of risk. GreenPower Motor is currently generating about 0.0 per unit of risk. If you would invest 358.00 in Thrivent High Yield on September 14, 2024 and sell it today you would earn a total of 68.00 from holding Thrivent High Yield or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. GreenPower Motor
Performance |
| Timeline |
| Thrivent High Yield |
| GreenPower Motor |
Thrivent High and GreenPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and GreenPower
The main advantage of trading using opposite Thrivent High and GreenPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, GreenPower 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 GreenPower will offset losses from the drop in GreenPower'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 |
| GreenPower vs. Aquagold International | GreenPower vs. Thrivent High Yield | GreenPower vs. Morningstar Unconstrained Allocation | GreenPower vs. Via Renewables |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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