Correlation Between Thrivent Natural and American Beacon
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and American Beacon 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 Natural and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Natural Resources and American Beacon Intl, you can compare the effects of market volatilities on Thrivent Natural and American Beacon 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 Natural with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and American Beacon.
Diversification Opportunities for Thrivent Natural and American Beacon
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thrivent and American is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and American Beacon Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Intl and Thrivent Natural 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 Natural Resources are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Intl has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and American Beacon go up and down completely randomly.
Pair Corralation between Thrivent Natural and American Beacon
If you would invest 945.00 in Thrivent Natural Resources on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Thrivent Natural Resources or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. American Beacon Intl
Performance |
| Timeline |
| Thrivent Natural Res |
| American Beacon Intl |
Thrivent Natural and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and American Beacon
The main advantage of trading using opposite Thrivent Natural and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Thrivent Natural vs. Blackrock Health Sciences | Thrivent Natural vs. Health Care Ultrasector | Thrivent Natural vs. Alger Health Sciences | Thrivent Natural vs. Allianzgi Health Sciences |
| American Beacon vs. Madison Diversified Income | American Beacon vs. Delaware Limited Term Diversified | American Beacon vs. Fulcrum Diversified Absolute | American Beacon vs. Allianzgi Diversified Income |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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