Correlation Between Thrivent High and Total Return
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Total Return 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 Total Return 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 Total Return Fund, you can compare the effects of market volatilities on Thrivent High and Total Return 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 Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Total Return.
Diversification Opportunities for Thrivent High and Total Return
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Total is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Thrivent High i.e., Thrivent High and Total Return go up and down completely randomly.
Pair Corralation between Thrivent High and Total Return
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.73 times more return on investment than Total Return. However, Thrivent High Yield is 1.37 times less risky than Total Return. It trades about 0.12 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.04 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. Total Return Fund
Performance |
| Timeline |
| Thrivent High Yield |
| Total Return |
Thrivent High and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Total Return
The main advantage of trading using opposite Thrivent High and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return'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 |
| Total Return vs. Metropolitan West Total | Total Return vs. SCOR PK | Total Return vs. Morningstar Unconstrained Allocation | Total Return 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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