Correlation Between Thrivent High and Oak Woods

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Can any of the company-specific risk be diversified away by investing in both Thrivent High and Oak Woods 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 Oak Woods 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 Oak Woods Acquisition, you can compare the effects of market volatilities on Thrivent High and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Oak Woods.

Diversification Opportunities for Thrivent High and Oak Woods

-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between Thrivent and Oak is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of Thrivent High i.e., Thrivent High and Oak Woods go up and down completely randomly.

Pair Corralation between Thrivent High and Oak Woods

Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.02 times more return on investment than Oak Woods. However, Thrivent High Yield is 44.34 times less risky than Oak Woods. It trades about 0.18 of its potential returns per unit of risk. Oak Woods Acquisition is currently generating about -0.16 per unit of risk. If you would invest  425.00  in Thrivent High Yield on September 13, 2024 and sell it today you would earn a total of  2.00  from holding Thrivent High Yield or generate 0.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Thrivent High Yield  vs.  Oak Woods Acquisition

 Performance 
       Timeline  
Thrivent High Yield 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Oak Woods Acquisition 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oak Woods Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Thrivent High and Oak Woods Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thrivent High and Oak Woods

The main advantage of trading using opposite Thrivent High and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.
The idea behind Thrivent High Yield and Oak Woods Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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