Correlation Between Thrivent High and Clearbridge Aggressive
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Clearbridge Aggressive 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 Clearbridge Aggressive 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 Clearbridge Aggressive Growth, you can compare the effects of market volatilities on Thrivent High and Clearbridge Aggressive 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 Clearbridge Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Clearbridge Aggressive.
Diversification Opportunities for Thrivent High and Clearbridge Aggressive
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Clearbridge is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Clearbridge Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Aggressive 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 Clearbridge Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Aggressive has no effect on the direction of Thrivent High i.e., Thrivent High and Clearbridge Aggressive go up and down completely randomly.
Pair Corralation between Thrivent High and Clearbridge Aggressive
Assuming the 90 days horizon Thrivent High is expected to generate 5.82 times less return on investment than Clearbridge Aggressive. But when comparing it to its historical volatility, Thrivent High Yield is 7.39 times less risky than Clearbridge Aggressive. It trades about 0.27 of its potential returns per unit of risk. Clearbridge Aggressive Growth is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 11,504 in Clearbridge Aggressive Growth on August 31, 2024 and sell it today you would earn a total of 633.00 from holding Clearbridge Aggressive Growth or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Clearbridge Aggressive Growth
Performance |
| Timeline |
| Thrivent High Yield |
| Clearbridge Aggressive |
Thrivent High and Clearbridge Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Clearbridge Aggressive
The main advantage of trading using opposite Thrivent High and Clearbridge Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Clearbridge Aggressive 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 Clearbridge Aggressive will offset losses from the drop in Clearbridge Aggressive's long position.| Thrivent High vs. Thrivent Income Fund | Thrivent High vs. HUMANA INC | Thrivent High vs. SCOR PK | Thrivent High vs. Aquagold International |
| Clearbridge Aggressive vs. Aquagold International | Clearbridge Aggressive vs. Morningstar Unconstrained Allocation | Clearbridge Aggressive vs. Thrivent High Yield | Clearbridge Aggressive vs. Via Renewables |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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