Correlation Between Thrivent High and Lifex Income
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Lifex Income 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 Lifex Income 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 Lifex Income, you can compare the effects of market volatilities on Thrivent High and Lifex Income 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 Lifex Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Lifex Income.
Diversification Opportunities for Thrivent High and Lifex Income
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thrivent and Lifex is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Lifex Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Income 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 Lifex Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Income has no effect on the direction of Thrivent High i.e., Thrivent High and Lifex Income go up and down completely randomly.
Pair Corralation between Thrivent High and Lifex Income
If you would invest 425.00 in Thrivent High Yield on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Thrivent High Yield or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Lifex Income
Performance |
| Timeline |
| Thrivent High Yield |
| Lifex Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thrivent High and Lifex Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Lifex Income
The main advantage of trading using opposite Thrivent High and Lifex Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Lifex Income 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 Lifex Income will offset losses from the drop in Lifex Income'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 |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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