Correlation Between Leafly Holdings and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Leafly Holdings and Thrivent High 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 Leafly Holdings and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leafly Holdings and Thrivent High Yield, you can compare the effects of market volatilities on Leafly Holdings and Thrivent High 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 Leafly Holdings with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leafly Holdings and Thrivent High.
Diversification Opportunities for Leafly Holdings and Thrivent High
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Leafly and Thrivent is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Leafly Holdings and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Leafly Holdings 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 Leafly Holdings are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Leafly Holdings i.e., Leafly Holdings and Thrivent High go up and down completely randomly.
Pair Corralation between Leafly Holdings and Thrivent High
Assuming the 90 days horizon Leafly Holdings is expected to generate 242.05 times more return on investment than Thrivent High. However, Leafly Holdings is 242.05 times more volatile than Thrivent High Yield. It trades about 0.09 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.11 per unit of risk. If you would invest 8.78 in Leafly Holdings on September 2, 2024 and sell it today you would lose (6.26) from holding Leafly Holdings or give up 71.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.71% |
| Values | Daily Returns |
Leafly Holdings vs. Thrivent High Yield
Performance |
| Timeline |
| Leafly Holdings |
| Thrivent High Yield |
Leafly Holdings and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leafly Holdings and Thrivent High
The main advantage of trading using opposite Leafly Holdings and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leafly Holdings position performs unexpectedly, Thrivent High 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 Thrivent High will offset losses from the drop in Thrivent High's long position.| Leafly Holdings vs. Leafly Holdings | Leafly Holdings vs. WM Technology | Leafly Holdings vs. Revelation Biosciences | Leafly Holdings vs. AEye Inc |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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