Correlation Between Thrivent Natural and Firsthand Alternative
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Firsthand Alternative 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 Firsthand Alternative 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 Firsthand Alternative Energy, you can compare the effects of market volatilities on Thrivent Natural and Firsthand Alternative 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 Firsthand Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Firsthand Alternative.
Diversification Opportunities for Thrivent Natural and Firsthand Alternative
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and Firsthand is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Firsthand Alternative Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firsthand Alternative 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 Firsthand Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firsthand Alternative has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Firsthand Alternative go up and down completely randomly.
Pair Corralation between Thrivent Natural and Firsthand Alternative
Assuming the 90 days horizon Thrivent Natural Resources is expected to generate 0.06 times more return on investment than Firsthand Alternative. However, Thrivent Natural Resources is 16.86 times less risky than Firsthand Alternative. It trades about 0.22 of its potential returns per unit of risk. Firsthand Alternative Energy is currently generating about 0.0 per unit of risk. If you would invest 898.00 in Thrivent Natural Resources on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Thrivent Natural Resources or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Firsthand Alternative Energy
Performance |
| Timeline |
| Thrivent Natural Res |
| Firsthand Alternative |
Thrivent Natural and Firsthand Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Firsthand Alternative
The main advantage of trading using opposite Thrivent Natural and Firsthand Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Firsthand Alternative 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 Firsthand Alternative will offset losses from the drop in Firsthand Alternative's long position.| Thrivent Natural vs. Ep Emerging Markets | Thrivent Natural vs. Pnc Emerging Markets | Thrivent Natural vs. Dws Emerging Markets | Thrivent Natural vs. Origin Emerging Markets |
| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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