Correlation Between Thrivent High and VanEck Merk
Can any of the company-specific risk be diversified away by investing in both Thrivent High and VanEck Merk 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 VanEck Merk 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 VanEck Merk Gold, you can compare the effects of market volatilities on Thrivent High and VanEck Merk 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 VanEck Merk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and VanEck Merk.
Diversification Opportunities for Thrivent High and VanEck Merk
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and VanEck is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and VanEck Merk Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Merk Gold 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 VanEck Merk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Merk Gold has no effect on the direction of Thrivent High i.e., Thrivent High and VanEck Merk go up and down completely randomly.
Pair Corralation between Thrivent High and VanEck Merk
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.12 times more return on investment than VanEck Merk. However, Thrivent High Yield is 8.48 times less risky than VanEck Merk. It trades about 0.27 of its potential returns per unit of risk. VanEck Merk Gold is currently generating about -0.18 per unit of risk. If you would invest 422.00 in Thrivent High Yield on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Thrivent High Yield or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. VanEck Merk Gold
Performance |
| Timeline |
| Thrivent High Yield |
| VanEck Merk Gold |
Thrivent High and VanEck Merk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and VanEck Merk
The main advantage of trading using opposite Thrivent High and VanEck Merk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, VanEck Merk 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 VanEck Merk will offset losses from the drop in VanEck Merk's long position.| Thrivent High vs. Thrivent Income Fund | Thrivent High vs. HUMANA INC | Thrivent High vs. SCOR PK | Thrivent High vs. Aquagold International |
| VanEck Merk vs. GraniteShares Gold Trust | VanEck Merk vs. Goldman Sachs Physical | VanEck Merk vs. abrdn Physical Gold | VanEck Merk vs. Sprott Gold Miners |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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