Correlation Between Thrivent Natural and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Ep Emerging 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 Ep Emerging 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 Ep Emerging Markets, you can compare the effects of market volatilities on Thrivent Natural and Ep Emerging 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Ep Emerging.
Diversification Opportunities for Thrivent Natural and Ep Emerging
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thrivent and EPASX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Ep Emerging go up and down completely randomly.
Pair Corralation between Thrivent Natural and Ep Emerging
Assuming the 90 days horizon Thrivent Natural Resources is expected to generate 0.08 times more return on investment than Ep Emerging. However, Thrivent Natural Resources is 11.9 times less risky than Ep Emerging. It trades about 0.15 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.01 per unit of risk. If you would invest 1,003 in Thrivent Natural Resources on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Thrivent Natural Resources or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Ep Emerging Markets
Performance |
| Timeline |
| Thrivent Natural Res |
| Ep Emerging Markets |
Thrivent Natural and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Ep Emerging
The main advantage of trading using opposite Thrivent Natural and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Thrivent Natural vs. Touchstone Ultra Short | Thrivent Natural vs. Siit Ultra Short | Thrivent Natural vs. Quantitative Longshort Equity | Thrivent Natural vs. Cmg Ultra Short |
| Ep Emerging vs. Europac International Bond | Ep Emerging vs. Europac International Dividend | Ep Emerging vs. Ep Emerging Markets | Ep Emerging vs. Investment Managers Series |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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