Correlation Between Thrivent Income and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Thrivent Income and Astor Long/short 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 Astor Long/short 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 Astor Longshort Fund, you can compare the effects of market volatilities on Thrivent Income and Astor Long/short 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 Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Income and Astor Long/short.
Diversification Opportunities for Thrivent Income and Astor Long/short
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thrivent and Astor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Income Fund and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Thrivent Income i.e., Thrivent Income and Astor Long/short go up and down completely randomly.
Pair Corralation between Thrivent Income and Astor Long/short
Assuming the 90 days horizon Thrivent Income is expected to generate 2.02 times less return on investment than Astor Long/short. But when comparing it to its historical volatility, Thrivent Income Fund is 1.06 times less risky than Astor Long/short. It trades about 0.08 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,233 in Astor Longshort Fund on September 4, 2024 and sell it today you would earn a total of 198.00 from holding Astor Longshort Fund or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Income Fund vs. Astor Longshort Fund
Performance |
| Timeline |
| Thrivent Income |
| Astor Long/short |
Thrivent Income and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Income and Astor Long/short
The main advantage of trading using opposite Thrivent Income and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Income position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Thrivent Income vs. Astor Longshort Fund | Thrivent Income vs. Locorr Longshort Modities | Thrivent Income vs. Goldman Sachs Short | Thrivent Income vs. Limited Term Tax |
| Astor Long/short vs. Virtus Seix Government | Astor Long/short vs. Dunham Porategovernment Bond | Astor Long/short vs. Dreyfus Government Cash | Astor Long/short vs. Dws Government Money |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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