Correlation Between Thrivent Moderate and Astor Star
Can any of the company-specific risk be diversified away by investing in both Thrivent Moderate and Astor Star 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 Moderate and Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Moderate Allocation and Astor Star Fund, you can compare the effects of market volatilities on Thrivent Moderate and Astor Star 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 Moderate with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Moderate and Astor Star.
Diversification Opportunities for Thrivent Moderate and Astor Star
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Astor is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Moderate Allocation and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Thrivent Moderate 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 Moderate Allocation are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Thrivent Moderate i.e., Thrivent Moderate and Astor Star go up and down completely randomly.
Pair Corralation between Thrivent Moderate and Astor Star
Assuming the 90 days horizon Thrivent Moderate Allocation is expected to generate 1.0 times more return on investment than Astor Star. However, Thrivent Moderate Allocation is 1.0 times less risky than Astor Star. It trades about 0.1 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.05 per unit of risk. If you would invest 1,306 in Thrivent Moderate Allocation on August 27, 2024 and sell it today you would earn a total of 378.00 from holding Thrivent Moderate Allocation or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Moderate Allocation vs. Astor Star Fund
Performance |
| Timeline |
| Thrivent Moderate |
| Astor Star Fund |
Thrivent Moderate and Astor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Moderate and Astor Star
The main advantage of trading using opposite Thrivent Moderate and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Moderate position performs unexpectedly, Astor Star 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 Astor Star will offset losses from the drop in Astor Star's long position.| Thrivent Moderate vs. T Rowe Price | Thrivent Moderate vs. Ishares Municipal Bond | Thrivent Moderate vs. Transamerica Intermediate Muni | Thrivent Moderate vs. Franklin High Yield |
| Astor Star vs. Astor Longshort Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Fidelity Balanced Fund | Astor Star vs. Thrivent Moderate Allocation |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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