Correlation Between Thrivent High and JE Cleantech
Can any of the company-specific risk be diversified away by investing in both Thrivent High and JE Cleantech 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 JE Cleantech 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 JE Cleantech Holdings, you can compare the effects of market volatilities on Thrivent High and JE Cleantech 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 JE Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and JE Cleantech.
Diversification Opportunities for Thrivent High and JE Cleantech
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thrivent and JCSE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and JE Cleantech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JE Cleantech Holdings 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 JE Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JE Cleantech Holdings has no effect on the direction of Thrivent High i.e., Thrivent High and JE Cleantech go up and down completely randomly.
Pair Corralation between Thrivent High and JE Cleantech
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.02 times more return on investment than JE Cleantech. However, Thrivent High Yield is 57.32 times less risky than JE Cleantech. It trades about 0.31 of its potential returns per unit of risk. JE Cleantech Holdings is currently generating about -0.07 per unit of risk. If you would invest 422.00 in Thrivent High Yield on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Thrivent High Yield or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. JE Cleantech Holdings
Performance |
| Timeline |
| Thrivent High Yield |
| JE Cleantech Holdings |
Thrivent High and JE Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and JE Cleantech
The main advantage of trading using opposite Thrivent High and JE Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, JE Cleantech 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 JE Cleantech will offset losses from the drop in JE Cleantech'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 |
| JE Cleantech vs. Aquagold International | JE Cleantech vs. Morningstar Unconstrained Allocation | JE Cleantech vs. High Yield Municipal Fund | JE Cleantech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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