Correlation Between Thrivent High and ICTS International
Can any of the company-specific risk be diversified away by investing in both Thrivent High and ICTS International 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 ICTS International 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 ICTS International NV, you can compare the effects of market volatilities on Thrivent High and ICTS International 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 ICTS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and ICTS International.
Diversification Opportunities for Thrivent High and ICTS International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and ICTS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and ICTS International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICTS International 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 ICTS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICTS International has no effect on the direction of Thrivent High i.e., Thrivent High and ICTS International go up and down completely randomly.
Pair Corralation between Thrivent High and ICTS International
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.06 times more return on investment than ICTS International. However, Thrivent High Yield is 16.9 times less risky than ICTS International. It trades about 0.15 of its potential returns per unit of risk. ICTS International NV is currently generating about 0.01 per unit of risk. If you would invest 373.00 in Thrivent High Yield on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Thrivent High Yield or generate 14.48% 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. ICTS International NV
Performance |
| Timeline |
| Thrivent High Yield |
| ICTS International |
Thrivent High and ICTS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and ICTS International
The main advantage of trading using opposite Thrivent High and ICTS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, ICTS International 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 ICTS International will offset losses from the drop in ICTS International'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 |
| ICTS International vs. HUMANA INC | ICTS International vs. Barloworld Ltd ADR | ICTS International vs. Morningstar Unconstrained Allocation | ICTS International 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |