Correlation Between Thrivent Natural and Global Real
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Global Real 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 Global Real 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 Global Real Estate, you can compare the effects of market volatilities on Thrivent Natural and Global Real 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 Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Global Real.
Diversification Opportunities for Thrivent Natural and Global Real
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thrivent and Global is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate 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 Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Global Real go up and down completely randomly.
Pair Corralation between Thrivent Natural and Global Real
Assuming the 90 days horizon Thrivent Natural is expected to generate 3.16 times less return on investment than Global Real. But when comparing it to its historical volatility, Thrivent Natural Resources is 11.37 times less risky than Global Real. It trades about 0.32 of its potential returns per unit of risk. Global Real Estate is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,681 in Global Real Estate on September 14, 2024 and sell it today you would earn a total of 228.00 from holding Global Real Estate or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Global Real Estate
Performance |
| Timeline |
| Thrivent Natural Res |
| Global Real Estate |
Thrivent Natural and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Global Real
The main advantage of trading using opposite Thrivent Natural and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Global Real 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 Global Real will offset losses from the drop in Global Real'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 |
| Global Real vs. Invesco Energy Fund | Global Real vs. Energy Basic Materials | Global Real vs. Dreyfus Natural Resources | Global Real vs. Thrivent Natural Resources |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |