Correlation Between Thrivent High and STF Tactical
Can any of the company-specific risk be diversified away by investing in both Thrivent High and STF Tactical 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 STF Tactical 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 STF Tactical Growth, you can compare the effects of market volatilities on Thrivent High and STF Tactical 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 STF Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and STF Tactical.
Diversification Opportunities for Thrivent High and STF Tactical
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and STF is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and STF Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STF Tactical Growth 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 STF Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STF Tactical Growth has no effect on the direction of Thrivent High i.e., Thrivent High and STF Tactical go up and down completely randomly.
Pair Corralation between Thrivent High and STF Tactical
Assuming the 90 days horizon Thrivent High is expected to generate 9.13 times less return on investment than STF Tactical. But when comparing it to its historical volatility, Thrivent High Yield is 6.81 times less risky than STF Tactical. It trades about 0.21 of its potential returns per unit of risk. STF Tactical Growth is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 3,327 in STF Tactical Growth on September 5, 2024 and sell it today you would earn a total of 218.00 from holding STF Tactical Growth or generate 6.55% 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. STF Tactical Growth
Performance |
| Timeline |
| Thrivent High Yield |
| STF Tactical Growth |
Thrivent High and STF Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and STF Tactical
The main advantage of trading using opposite Thrivent High and STF Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, STF Tactical 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 STF Tactical will offset losses from the drop in STF Tactical'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 |
| STF Tactical vs. Aquagold International | STF Tactical vs. Morningstar Unconstrained Allocation | STF Tactical vs. High Yield Municipal Fund | STF Tactical 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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