Correlation Between Thrivent High and IShares
Can any of the company-specific risk be diversified away by investing in both Thrivent High and IShares 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 IShares 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 IShares, you can compare the effects of market volatilities on Thrivent High and IShares 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 IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and IShares.
Diversification Opportunities for Thrivent High and IShares
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and IShares is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares 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 IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of Thrivent High i.e., Thrivent High and IShares go up and down completely randomly.
Pair Corralation between Thrivent High and IShares
Assuming the 90 days horizon Thrivent High is expected to generate 2.04 times less return on investment than IShares. But when comparing it to its historical volatility, Thrivent High Yield is 2.88 times less risky than IShares. It trades about 0.11 of its potential returns per unit of risk. IShares is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,766 in IShares on August 30, 2024 and sell it today you would earn a total of 1,535 from holding IShares or generate 32.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.85% |
| Values | Daily Returns |
Thrivent High Yield vs. IShares
Performance |
| Timeline |
| Thrivent High Yield |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thrivent High and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and IShares
The main advantage of trading using opposite Thrivent High and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' 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 |
| IShares vs. VanEck Merk Gold | IShares vs. Goldman Sachs Physical | IShares vs. GraniteShares Gold Trust | IShares vs. iShares Gold Trust |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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