Correlation Between Option Care and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Option Care 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 Option Care and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Option Care Health and Thrivent High Yield, you can compare the effects of market volatilities on Option Care 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 Option Care with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Option Care and Thrivent High.
Diversification Opportunities for Option Care and Thrivent High
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Option and Thrivent is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Option Care Health 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 Option Care 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 Option Care Health 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 Option Care i.e., Option Care and Thrivent High go up and down completely randomly.
Pair Corralation between Option Care and Thrivent High
Given the investment horizon of 90 days Option Care Health is expected to under-perform the Thrivent High. In addition to that, Option Care is 7.43 times more volatile than Thrivent High Yield. It trades about -0.02 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.11 per unit of volatility. If you would invest 361.00 in Thrivent High Yield on August 23, 2024 and sell it today you would earn a total of 64.00 from holding Thrivent High Yield or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Option Care Health vs. Thrivent High Yield
Performance |
| Timeline |
| Option Care Health |
| Thrivent High Yield |
Option Care and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Option Care and Thrivent High
The main advantage of trading using opposite Option Care and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Option Care 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.| Option Care vs. Addus HomeCare | Option Care vs. Acadia Healthcare | Option Care vs. Encompass Health Corp | Option Care vs. Select Medical Holdings |
| Thrivent High vs. Thrivent Large Cap | Thrivent High vs. HUMANA INC | Thrivent High vs. Aquagold International | Thrivent High vs. Barloworld Ltd ADR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |