Correlation Between Thrivent Natural and Ab Global
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Ab Global 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 Ab Global 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 Ab Global Bond, you can compare the effects of market volatilities on Thrivent Natural and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Ab Global.
Diversification Opportunities for Thrivent Natural and Ab Global
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thrivent and ANAGX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Ab Global go up and down completely randomly.
Pair Corralation between Thrivent Natural and Ab Global
Assuming the 90 days horizon Thrivent Natural Resources is expected to generate 0.38 times more return on investment than Ab Global. However, Thrivent Natural Resources is 2.66 times less risky than Ab Global. It trades about 0.2 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.04 per unit of risk. If you would invest 892.00 in Thrivent Natural Resources on October 11, 2024 and sell it today you would earn a total of 103.00 from holding Thrivent Natural Resources or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Ab Global Bond
Performance |
| Timeline |
| Thrivent Natural Res |
| Ab Global Bond |
Thrivent Natural and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Ab Global
The main advantage of trading using opposite Thrivent Natural and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Thrivent Natural vs. Asg Managed Futures | Thrivent Natural vs. Aqr Managed Futures | Thrivent Natural vs. Lord Abbett Inflation | Thrivent Natural vs. Credit Suisse Multialternative |
| Ab Global vs. Tortoise Energy Independence | Ab Global vs. Thrivent Natural Resources | Ab Global vs. Blackrock All Cap Energy | Ab Global vs. Firsthand Alternative Energy |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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