Correlation Between Thrivent Large and Baron Health
Can any of the company-specific risk be diversified away by investing in both Thrivent Large and Baron Health 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 Large and Baron Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Large Cap and Baron Health Care, you can compare the effects of market volatilities on Thrivent Large and Baron Health 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 Large with a short position of Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Large and Baron Health.
Diversification Opportunities for Thrivent Large and Baron Health
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Baron is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Large Cap and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care and Thrivent Large 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 Large Cap are associated (or correlated) with Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Thrivent Large i.e., Thrivent Large and Baron Health go up and down completely randomly.
Pair Corralation between Thrivent Large and Baron Health
Assuming the 90 days horizon Thrivent Large Cap is expected to generate 1.36 times more return on investment than Baron Health. However, Thrivent Large is 1.36 times more volatile than Baron Health Care. It trades about 0.09 of its potential returns per unit of risk. Baron Health Care is currently generating about 0.03 per unit of risk. If you would invest 1,425 in Thrivent Large Cap on September 3, 2024 and sell it today you would earn a total of 887.00 from holding Thrivent Large Cap or generate 62.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Large Cap vs. Baron Health Care
Performance |
| Timeline |
| Thrivent Large Cap |
| Baron Health Care |
Thrivent Large and Baron Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Large and Baron Health
The main advantage of trading using opposite Thrivent Large and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Large position performs unexpectedly, Baron Health 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 Baron Health will offset losses from the drop in Baron Health's long position.| Thrivent Large vs. Firsthand Technology Opportunities | Thrivent Large vs. Vanguard Information Technology | Thrivent Large vs. Janus Global Technology | Thrivent Large vs. Pgim Jennison Technology |
| Baron Health vs. Vanguard Health Care | Baron Health vs. Vanguard Health Care | Baron Health vs. T Rowe Price | Baron Health vs. T Rowe Price |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| 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 | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |