Correlation Between Mainstay Growth and Thrivent Natural
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Thrivent Natural 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 Mainstay Growth and Thrivent Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Growth Etf and Thrivent Natural Resources, you can compare the effects of market volatilities on Mainstay Growth and Thrivent Natural 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 Mainstay Growth with a short position of Thrivent Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Thrivent Natural.
Diversification Opportunities for Mainstay Growth and Thrivent Natural
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Thrivent is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Thrivent Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Natural Res and Mainstay Growth 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 Mainstay Growth Etf are associated (or correlated) with Thrivent Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Natural Res has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Thrivent Natural go up and down completely randomly.
Pair Corralation between Mainstay Growth and Thrivent Natural
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 6.66 times more return on investment than Thrivent Natural. However, Mainstay Growth is 6.66 times more volatile than Thrivent Natural Resources. It trades about 0.09 of its potential returns per unit of risk. Thrivent Natural Resources is currently generating about 0.15 per unit of risk. If you would invest 1,489 in Mainstay Growth Etf on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Mainstay Growth Etf or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Thrivent Natural Resources
Performance |
| Timeline |
| Mainstay Growth Etf |
| Thrivent Natural Res |
Mainstay Growth and Thrivent Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Thrivent Natural
The main advantage of trading using opposite Mainstay Growth and Thrivent Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Thrivent Natural 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 Natural will offset losses from the drop in Thrivent Natural's long position.| Mainstay Growth vs. Shelton Emerging Markets | Mainstay Growth vs. Black Oak Emerging | Mainstay Growth vs. Vy Jpmorgan Emerging | Mainstay Growth vs. Pnc Emerging Markets |
| Thrivent Natural vs. Ep Emerging Markets | Thrivent Natural vs. Pnc Emerging Markets | Thrivent Natural vs. Dws Emerging Markets | Thrivent Natural vs. Origin Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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