Correlation Between Thrivent Aggressive and Value Fund
Can any of the company-specific risk be diversified away by investing in both Thrivent Aggressive and Value Fund 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 Thrivent Aggressive and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Aggressive Allocation and Value Fund Value, you can compare the effects of market volatilities on Thrivent Aggressive and Value Fund 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 Thrivent Aggressive with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Aggressive and Value Fund.
Diversification Opportunities for Thrivent Aggressive and Value Fund
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and Value is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Aggressive Allocation and Value Fund Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Value and Thrivent Aggressive 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 Thrivent Aggressive Allocation are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Value has no effect on the direction of Thrivent Aggressive i.e., Thrivent Aggressive and Value Fund go up and down completely randomly.
Pair Corralation between Thrivent Aggressive and Value Fund
Assuming the 90 days horizon Thrivent Aggressive Allocation is expected to generate 1.02 times more return on investment than Value Fund. However, Thrivent Aggressive is 1.02 times more volatile than Value Fund Value. It trades about 0.14 of its potential returns per unit of risk. Value Fund Value is currently generating about 0.11 per unit of risk. If you would invest 1,826 in Thrivent Aggressive Allocation on August 28, 2024 and sell it today you would earn a total of 288.00 from holding Thrivent Aggressive Allocation or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Aggressive Allocation vs. Value Fund Value
Performance |
| Timeline |
| Thrivent Aggressive |
| Value Fund Value |
Thrivent Aggressive and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Aggressive and Value Fund
The main advantage of trading using opposite Thrivent Aggressive and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Aggressive position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.| Thrivent Aggressive vs. Thrivent Moderate Allocation | Thrivent Aggressive vs. Thrivent Mid Cap | Thrivent Aggressive vs. Thrivent Small Cap | Thrivent Aggressive vs. Aquagold International |
| Value Fund vs. International Equity Fund | Value Fund vs. Growth Fund Growth | Value Fund vs. Homestead Intermediate Bond | Value Fund vs. Short Term Bond Fund |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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