Correlation Between Thrivent Natural and Great West
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Great West 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 Great West 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 Great West Templeton Global, you can compare the effects of market volatilities on Thrivent Natural and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Great West.
Diversification Opportunities for Thrivent Natural and Great West
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thrivent and Great is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Great West Templeton Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Templeton 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Templeton has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Great West go up and down completely randomly.
Pair Corralation between Thrivent Natural and Great West
Assuming the 90 days horizon Thrivent Natural Resources is expected to generate 0.24 times more return on investment than Great West. However, Thrivent Natural Resources is 4.12 times less risky than Great West. It trades about 0.25 of its potential returns per unit of risk. Great West Templeton Global is currently generating about 0.03 per unit of risk. If you would invest 955.00 in Thrivent Natural Resources on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Thrivent Natural Resources or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Great West Templeton Global
Performance |
| Timeline |
| Thrivent Natural Res |
| Great West Templeton |
Thrivent Natural and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Great West
The main advantage of trading using opposite Thrivent Natural and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Thrivent Natural vs. Vanguard Total Stock | Thrivent Natural vs. Vanguard 500 Index | Thrivent Natural vs. Vanguard Total Stock | Thrivent Natural vs. Vanguard Total Stock |
| Great West vs. Adams Natural Resources | Great West vs. Calvert Global Energy | Great West vs. Thrivent Natural Resources | Great West vs. Invesco Energy Fund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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