Correlation Between Mairs Power and Thrivent Large
Can any of the company-specific risk be diversified away by investing in both Mairs Power and Thrivent Large 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 Mairs Power and Thrivent Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Growth and Thrivent Large Cap, you can compare the effects of market volatilities on Mairs Power and Thrivent Large 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 Mairs Power with a short position of Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and Thrivent Large.
Diversification Opportunities for Mairs Power and Thrivent Large
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mairs and Thrivent is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Growth and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap and Mairs Power 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 Mairs Power Growth are associated (or correlated) with Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Mairs Power i.e., Mairs Power and Thrivent Large go up and down completely randomly.
Pair Corralation between Mairs Power and Thrivent Large
Assuming the 90 days horizon Mairs Power Growth is expected to generate 0.81 times more return on investment than Thrivent Large. However, Mairs Power Growth is 1.23 times less risky than Thrivent Large. It trades about 0.11 of its potential returns per unit of risk. Thrivent Large Cap is currently generating about 0.03 per unit of risk. If you would invest 17,218 in Mairs Power Growth on October 24, 2024 and sell it today you would earn a total of 301.00 from holding Mairs Power Growth or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Growth vs. Thrivent Large Cap
Performance |
| Timeline |
| Mairs Power Growth |
| Thrivent Large Cap |
Mairs Power and Thrivent Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and Thrivent Large
The main advantage of trading using opposite Mairs Power and Thrivent Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power position performs unexpectedly, Thrivent Large 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 Large will offset losses from the drop in Thrivent Large's long position.| Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
| Thrivent Large vs. Calvert International Equity | Thrivent Large vs. Rbc Global Equity | Thrivent Large vs. Dreyfusstandish Global Fixed | Thrivent Large vs. Transamerica International Equity |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |