Correlation Between Pear Tree and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Pear Tree 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 Pear Tree and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Tree Polaris and Thrivent High Yield, you can compare the effects of market volatilities on Pear Tree 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 Pear Tree with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Tree and Thrivent High.
Diversification Opportunities for Pear Tree and Thrivent High
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pear and Thrivent is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pear Tree Polaris 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 Pear Tree 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 Pear Tree Polaris 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 Pear Tree i.e., Pear Tree and Thrivent High go up and down completely randomly.
Pair Corralation between Pear Tree and Thrivent High
Assuming the 90 days horizon Pear Tree Polaris is expected to under-perform the Thrivent High. In addition to that, Pear Tree is 4.95 times more volatile than Thrivent High Yield. It trades about -0.13 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.27 per unit of volatility. If you would invest 422.00 in Thrivent High Yield on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Thrivent High Yield or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pear Tree Polaris vs. Thrivent High Yield
Performance |
| Timeline |
| Pear Tree Polaris |
| Thrivent High Yield |
Pear Tree and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Tree and Thrivent High
The main advantage of trading using opposite Pear Tree and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Tree 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.| Pear Tree vs. Wasatch E Growth | Pear Tree vs. Tcw E Fixed | Pear Tree vs. Tcw Relative Value | Pear Tree vs. Amg Managers Loomis |
| Thrivent High vs. Thrivent Income Fund | Thrivent High vs. HUMANA INC | Thrivent High vs. SCOR PK | Thrivent High vs. Aquagold International |
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
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |