Correlation Between Thrivent High and Tema ETF
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Tema ETF 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 Tema ETF 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 Tema ETF Trust, you can compare the effects of market volatilities on Thrivent High and Tema ETF 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 Tema ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Tema ETF.
Diversification Opportunities for Thrivent High and Tema ETF
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thrivent and Tema is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Tema ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema ETF 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 Tema ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema ETF Trust has no effect on the direction of Thrivent High i.e., Thrivent High and Tema ETF go up and down completely randomly.
Pair Corralation between Thrivent High and Tema ETF
Assuming the 90 days horizon Thrivent High is expected to generate 8.21 times less return on investment than Tema ETF. But when comparing it to its historical volatility, Thrivent High Yield is 6.06 times less risky than Tema ETF. It trades about 0.18 of its potential returns per unit of risk. Tema ETF Trust is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,181 in Tema ETF Trust on September 13, 2024 and sell it today you would earn a total of 88.50 from holding Tema ETF Trust or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thrivent High Yield vs. Tema ETF Trust
Performance |
| Timeline |
| Thrivent High Yield |
| Tema ETF Trust |
Thrivent High and Tema ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Tema ETF
The main advantage of trading using opposite Thrivent High and Tema ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Tema ETF 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 Tema ETF will offset losses from the drop in Tema ETF'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 |
| Tema ETF vs. Invesco Dynamic Building | Tema ETF vs. SCOR PK | Tema ETF vs. Morningstar Unconstrained Allocation | Tema ETF 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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