Correlation Between Thrivent High and KraneShares Trust
Can any of the company-specific risk be diversified away by investing in both Thrivent High and KraneShares Trust 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 KraneShares Trust 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 KraneShares Trust , you can compare the effects of market volatilities on Thrivent High and KraneShares Trust 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 KraneShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and KraneShares Trust.
Diversification Opportunities for Thrivent High and KraneShares Trust
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and KraneShares is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and KraneShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Trust 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 KraneShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Trust has no effect on the direction of Thrivent High i.e., Thrivent High and KraneShares Trust go up and down completely randomly.
Pair Corralation between Thrivent High and KraneShares Trust
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.09 times more return on investment than KraneShares Trust. However, Thrivent High Yield is 11.44 times less risky than KraneShares Trust. It trades about 0.16 of its potential returns per unit of risk. KraneShares Trust is currently generating about -0.03 per unit of risk. If you would invest 424.00 in Thrivent High Yield on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Thrivent High Yield or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. KraneShares Trust
Performance |
| Timeline |
| Thrivent High Yield |
| KraneShares Trust |
Thrivent High and KraneShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and KraneShares Trust
The main advantage of trading using opposite Thrivent High and KraneShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, KraneShares Trust 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 KraneShares Trust will offset losses from the drop in KraneShares Trust'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 |
| KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II |
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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