Correlation Between SPDR SP and Thrivent ETF
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Thrivent ETF 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 SPDR SP and Thrivent ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP MIDCAP and Thrivent ETF Trust, you can compare the effects of market volatilities on SPDR SP and Thrivent ETF 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 SPDR SP with a short position of Thrivent ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Thrivent ETF.
Diversification Opportunities for SPDR SP and Thrivent ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and Thrivent is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP MIDCAP and Thrivent ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent ETF Trust and SPDR SP 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 SPDR SP MIDCAP are associated (or correlated) with Thrivent ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent ETF Trust has no effect on the direction of SPDR SP i.e., SPDR SP and Thrivent ETF go up and down completely randomly.
Pair Corralation between SPDR SP and Thrivent ETF
Considering the 90-day investment horizon SPDR SP is expected to generate 1.3 times less return on investment than Thrivent ETF. But when comparing it to its historical volatility, SPDR SP MIDCAP is 1.11 times less risky than Thrivent ETF. It trades about 0.05 of its potential returns per unit of risk. Thrivent ETF Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,761 in Thrivent ETF Trust on August 23, 2024 and sell it today you would earn a total of 1,086 from holding Thrivent ETF Trust or generate 39.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP MIDCAP vs. Thrivent ETF Trust
Performance |
| Timeline |
| SPDR SP MIDCAP |
| Thrivent ETF Trust |
SPDR SP and Thrivent ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Thrivent ETF
The main advantage of trading using opposite SPDR SP and Thrivent ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Thrivent ETF 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 ETF will offset losses from the drop in Thrivent ETF's long position.| SPDR SP vs. iShares Core SP | SPDR SP vs. iShares Russell 2000 | SPDR SP vs. iShares MSCI EAFE | SPDR SP vs. iShares Russell 2000 |
| Thrivent ETF vs. Vanguard Mid Cap Index | Thrivent ETF vs. Vanguard Extended Market | Thrivent ETF vs. iShares Core SP | Thrivent ETF vs. iShares Russell Mid Cap |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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