Correlation Between Thrivent Natural and College Retirement
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and College Retirement 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 College Retirement 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 College Retirement Equities, you can compare the effects of market volatilities on Thrivent Natural and College Retirement 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 College Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and College Retirement.
Diversification Opportunities for Thrivent Natural and College Retirement
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and College is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and College Retirement Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on College Retirement 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 College Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of College Retirement has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and College Retirement go up and down completely randomly.
Pair Corralation between Thrivent Natural and College Retirement
Assuming the 90 days horizon Thrivent Natural Resources is expected to under-perform the College Retirement. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thrivent Natural Resources is 3.4 times less risky than College Retirement. The mutual fund trades about -0.05 of its potential returns per unit of risk. The College Retirement Equities is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 34,397 in College Retirement Equities on October 14, 2024 and sell it today you would lose (171.00) from holding College Retirement Equities or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. College Retirement Equities
Performance |
| Timeline |
| Thrivent Natural Res |
| College Retirement |
Thrivent Natural and College Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and College Retirement
The main advantage of trading using opposite Thrivent Natural and College Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, College Retirement 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 College Retirement will offset losses from the drop in College Retirement's long position.| Thrivent Natural vs. Oppenheimer Gold Special | Thrivent Natural vs. The Gold Bullion | Thrivent Natural vs. Gamco Global Gold | Thrivent Natural vs. Fidelity Advisor Gold |
| College Retirement vs. Hennessy Bp Energy | College Retirement vs. Vanguard Energy Index | College Retirement vs. Thrivent Natural Resources | College Retirement vs. Pimco Energy Tactical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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