Correlation Between Pro Dex and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Pro Dex 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 Pro Dex and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Dex and Thrivent High Yield, you can compare the effects of market volatilities on Pro Dex 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 Pro Dex with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and Thrivent High.
Diversification Opportunities for Pro Dex and Thrivent High
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pro and Thrivent is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex 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 Pro Dex 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 Pro Dex 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 Pro Dex i.e., Pro Dex and Thrivent High go up and down completely randomly.
Pair Corralation between Pro Dex and Thrivent High
Given the investment horizon of 90 days Pro Dex is expected to generate 14.56 times more return on investment than Thrivent High. However, Pro Dex is 14.56 times more volatile than Thrivent High Yield. It trades about 0.13 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.18 per unit of risk. If you would invest 1,590 in Pro Dex on August 24, 2024 and sell it today you would earn a total of 2,643 from holding Pro Dex or generate 166.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Dex vs. Thrivent High Yield
Performance |
| Timeline |
| Pro Dex |
| Thrivent High Yield |
Pro Dex and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Dex and Thrivent High
The main advantage of trading using opposite Pro Dex and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Dex 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.| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |