Correlation Between Thrivent High and Lifex Inflation
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Lifex Inflation 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 Inflation 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 Inflation Protected Income, you can compare the effects of market volatilities on Thrivent High and Lifex Inflation 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 Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Lifex Inflation.
Diversification Opportunities for Thrivent High and Lifex Inflation
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and Lifex is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Lifex Inflation Protected Inco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Inflation Prot 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 Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Inflation Prot has no effect on the direction of Thrivent High i.e., Thrivent High and Lifex Inflation go up and down completely randomly.
Pair Corralation between Thrivent High and Lifex Inflation
If you would invest 423.00 in Thrivent High Yield on September 13, 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 | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Thrivent High Yield vs. Lifex Inflation Protected Inco
Performance |
| Timeline |
| Thrivent High Yield |
| Lifex Inflation Prot |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thrivent High and Lifex Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Lifex Inflation
The main advantage of trading using opposite Thrivent High and Lifex Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Lifex Inflation 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 Inflation will offset losses from the drop in Lifex Inflation'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 |
| Lifex Inflation vs. Stone Ridge High | Lifex Inflation vs. Fidelity Emerging Asia | Lifex Inflation vs. 1290 High Yield | Lifex Inflation vs. Putnam Short Duration |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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