Correlation Between Thrivent High and Western Asset
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Western Asset 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 Western Asset 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 Western Asset Total, you can compare the effects of market volatilities on Thrivent High and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Western Asset.
Diversification Opportunities for Thrivent High and Western Asset
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thrivent and Western is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Western Asset Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Total 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Total has no effect on the direction of Thrivent High i.e., Thrivent High and Western Asset go up and down completely randomly.
Pair Corralation between Thrivent High and Western Asset
Assuming the 90 days horizon Thrivent High Yield is expected to generate 1.02 times more return on investment than Western Asset. However, Thrivent High is 1.02 times more volatile than Western Asset Total. It trades about 0.16 of its potential returns per unit of risk. Western Asset Total is currently generating about 0.09 per unit of risk. If you would invest 388.00 in Thrivent High Yield on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Thrivent High Yield or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Western Asset Total
Performance |
| Timeline |
| Thrivent High Yield |
| Western Asset Total |
Thrivent High and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Western Asset
The main advantage of trading using opposite Thrivent High and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
| Western Asset vs. Clearbridge Aggressive Growth | Western Asset vs. Clearbridge Small Cap | Western Asset vs. Qs International Equity | Western Asset vs. Clearbridge Appreciation Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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