Correlation Between Thrivent High and Mfs International
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Mfs International 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 Mfs International 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 Mfs International Growth, you can compare the effects of market volatilities on Thrivent High and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Mfs International.
Diversification Opportunities for Thrivent High and Mfs International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Mfs is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Mfs International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Growth 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Growth has no effect on the direction of Thrivent High i.e., Thrivent High and Mfs International go up and down completely randomly.
Pair Corralation between Thrivent High and Mfs International
Assuming the 90 days horizon Thrivent High is expected to generate 1.07 times less return on investment than Mfs International. But when comparing it to its historical volatility, Thrivent High Yield is 2.84 times less risky than Mfs International. It trades about 0.14 of its potential returns per unit of risk. Mfs International Growth is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,541 in Mfs International Growth on September 12, 2024 and sell it today you would earn a total of 614.00 from holding Mfs International Growth or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Mfs International Growth
Performance |
| Timeline |
| Thrivent High Yield |
| Mfs International Growth |
Thrivent High and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Mfs International
The main advantage of trading using opposite Thrivent High and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International'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 |
| Mfs International vs. Europacific Growth Fund | Mfs International vs. SCOR PK | Mfs International vs. Morningstar Unconstrained Allocation | Mfs International 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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