Correlation Between Thrivent High and Mfs Total
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Mfs Total 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 Total 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 Total Return, you can compare the effects of market volatilities on Thrivent High and Mfs Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Mfs Total.
Diversification Opportunities for Thrivent High and Mfs Total
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Mfs is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Mfs Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Total Return has no effect on the direction of Thrivent High i.e., Thrivent High and Mfs Total go up and down completely randomly.
Pair Corralation between Thrivent High and Mfs Total
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.77 times more return on investment than Mfs Total. However, Thrivent High Yield is 1.3 times less risky than Mfs Total. It trades about 0.12 of its potential returns per unit of risk. Mfs Total Return is currently generating about 0.05 per unit of risk. If you would invest 359.00 in Thrivent High Yield on September 12, 2024 and sell it today you would earn a total of 68.00 from holding Thrivent High Yield or generate 18.94% 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 Total Return
Performance |
| Timeline |
| Thrivent High Yield |
| Mfs Total Return |
Thrivent High and Mfs Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Mfs Total
The main advantage of trading using opposite Thrivent High and Mfs Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Mfs Total 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 Total will offset losses from the drop in Mfs Total'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 Total vs. Metropolitan West Total | Mfs Total vs. SCOR PK | Mfs Total vs. Morningstar Unconstrained Allocation | Mfs Total 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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