Correlation Between Thrivent High and Live Oak
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Live Oak 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 Live Oak 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 Live Oak Health, you can compare the effects of market volatilities on Thrivent High and Live Oak 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 Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Live Oak.
Diversification Opportunities for Thrivent High and Live Oak
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Live is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health 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 Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Thrivent High i.e., Thrivent High and Live Oak go up and down completely randomly.
Pair Corralation between Thrivent High and Live Oak
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.27 times more return on investment than Live Oak. However, Thrivent High Yield is 3.75 times less risky than Live Oak. It trades about 0.22 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.05 per unit of risk. If you would invest 404.00 in Thrivent High Yield on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Thrivent High Yield or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Live Oak Health
Performance |
| Timeline |
| Thrivent High Yield |
| Live Oak Health |
Thrivent High and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Live Oak
The main advantage of trading using opposite Thrivent High and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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