Correlation Between IShares Small and Thrivent ETF
Can any of the company-specific risk be diversified away by investing in both IShares Small and Thrivent ETF 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 IShares Small and Thrivent ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Small Cap and Thrivent ETF Trust, you can compare the effects of market volatilities on IShares Small and Thrivent ETF 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 IShares Small with a short position of Thrivent ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Small and Thrivent ETF.
Diversification Opportunities for IShares Small and Thrivent ETF
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Thrivent is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Small Cap and Thrivent ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent ETF Trust and IShares Small 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 iShares Small Cap are associated (or correlated) with Thrivent ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent ETF Trust has no effect on the direction of IShares Small i.e., IShares Small and Thrivent ETF go up and down completely randomly.
Pair Corralation between IShares Small and Thrivent ETF
Given the investment horizon of 90 days iShares Small Cap is expected to generate 1.45 times more return on investment than Thrivent ETF. However, IShares Small is 1.45 times more volatile than Thrivent ETF Trust. It trades about 0.21 of its potential returns per unit of risk. Thrivent ETF Trust is currently generating about 0.23 per unit of risk. If you would invest 3,228 in iShares Small Cap on August 31, 2024 and sell it today you would earn a total of 345.00 from holding iShares Small Cap or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Small Cap vs. Thrivent ETF Trust
Performance |
| Timeline |
| iShares Small Cap |
| Thrivent ETF Trust |
IShares Small and Thrivent ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Small and Thrivent ETF
The main advantage of trading using opposite IShares Small and Thrivent ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Small position performs unexpectedly, Thrivent ETF 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 ETF will offset losses from the drop in Thrivent ETF's long position.| IShares Small vs. Horizon Kinetics Inflation | IShares Small vs. Virtus ETF Trust | IShares Small vs. Invesco SP SmallCap | IShares Small vs. iShares MSCI USA |
| Thrivent ETF vs. iShares Small Cap | Thrivent ETF vs. Invesco ESG NASDAQ | Thrivent ETF vs. Invesco ESG NASDAQ | Thrivent ETF vs. BlackRock Carbon Transition |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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