Correlation Between Thrivent Income and Baird Strategic
Can any of the company-specific risk be diversified away by investing in both Thrivent Income and Baird Strategic 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 Income and Baird Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Income Fund and Baird Strategic Municipal, you can compare the effects of market volatilities on Thrivent Income and Baird Strategic 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 Income with a short position of Baird Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Income and Baird Strategic.
Diversification Opportunities for Thrivent Income and Baird Strategic
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Baird is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Income Fund and Baird Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Strategic Municipal and Thrivent Income 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 Income Fund are associated (or correlated) with Baird Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Strategic Municipal has no effect on the direction of Thrivent Income i.e., Thrivent Income and Baird Strategic go up and down completely randomly.
Pair Corralation between Thrivent Income and Baird Strategic
Assuming the 90 days horizon Thrivent Income Fund is expected to under-perform the Baird Strategic. In addition to that, Thrivent Income is 1.58 times more volatile than Baird Strategic Municipal. It trades about -0.07 of its total potential returns per unit of risk. Baird Strategic Municipal is currently generating about 0.15 per unit of volatility. If you would invest 1,025 in Baird Strategic Municipal on August 25, 2024 and sell it today you would earn a total of 7.00 from holding Baird Strategic Municipal or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Income Fund vs. Baird Strategic Municipal
Performance |
| Timeline |
| Thrivent Income |
| Baird Strategic Municipal |
Thrivent Income and Baird Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Income and Baird Strategic
The main advantage of trading using opposite Thrivent Income and Baird Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Income position performs unexpectedly, Baird Strategic 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 Baird Strategic will offset losses from the drop in Baird Strategic's long position.| Thrivent Income vs. Baird Strategic Municipal | Thrivent Income vs. Nuveen All American Municipal | Thrivent Income vs. Transamerica Intermediate Muni | Thrivent Income vs. T Rowe Price |
| Baird Strategic vs. Vanguard Intermediate Term Tax Exempt | Baird Strategic vs. Vanguard Intermediate Term Tax Exempt | Baird Strategic vs. Tax Exempt Bond | Baird Strategic vs. Tax Exempt Bond |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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