Correlation Between Thrivent Moderate and Polar Capital
Can any of the company-specific risk be diversified away by investing in both Thrivent Moderate and Polar Capital 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 Polar Capital 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 Polar Capital Emerging, you can compare the effects of market volatilities on Thrivent Moderate and Polar Capital 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 Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Moderate and Polar Capital.
Diversification Opportunities for Thrivent Moderate and Polar Capital
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and Polar is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Moderate Allocation and Polar Capital Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Emerging 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 Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Emerging has no effect on the direction of Thrivent Moderate i.e., Thrivent Moderate and Polar Capital go up and down completely randomly.
Pair Corralation between Thrivent Moderate and Polar Capital
Assuming the 90 days horizon Thrivent Moderate Allocation is expected to generate 0.53 times more return on investment than Polar Capital. However, Thrivent Moderate Allocation is 1.88 times less risky than Polar Capital. It trades about 0.11 of its potential returns per unit of risk. Polar Capital Emerging is currently generating about -0.09 per unit of risk. If you would invest 1,661 in Thrivent Moderate Allocation on August 30, 2024 and sell it today you would earn a total of 36.00 from holding Thrivent Moderate Allocation or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Thrivent Moderate Allocation vs. Polar Capital Emerging
Performance |
| Timeline |
| Thrivent Moderate |
| Polar Capital Emerging |
Thrivent Moderate and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Moderate and Polar Capital
The main advantage of trading using opposite Thrivent Moderate and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Moderate position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital's long position.| Thrivent Moderate vs. Thrivent Partner Worldwide | Thrivent Moderate vs. Thrivent Large Cap | Thrivent Moderate vs. Thrivent Limited Maturity | Thrivent Moderate vs. Thrivent High Income |
| Polar Capital vs. Small Cap Equity | Polar Capital vs. Rbc Ultra Short Fixed | Polar Capital vs. Balanced Fund Retail | Polar Capital vs. Doubleline E Fixed |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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