Correlation Between Gold and Thrivent Government
Can any of the company-specific risk be diversified away by investing in both Gold and Thrivent Government 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 Gold and Thrivent Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold And Precious and Thrivent Government Bond, you can compare the effects of market volatilities on Gold and Thrivent Government 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 Gold with a short position of Thrivent Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold and Thrivent Government.
Diversification Opportunities for Gold and Thrivent Government
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gold and Thrivent is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gold And Precious and Thrivent Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Government Bond and Gold 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 Gold And Precious are associated (or correlated) with Thrivent Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Government Bond has no effect on the direction of Gold i.e., Gold and Thrivent Government go up and down completely randomly.
Pair Corralation between Gold and Thrivent Government
Assuming the 90 days horizon Gold And Precious is expected to generate 7.15 times more return on investment than Thrivent Government. However, Gold is 7.15 times more volatile than Thrivent Government Bond. It trades about 0.15 of its potential returns per unit of risk. Thrivent Government Bond is currently generating about 0.11 per unit of risk. If you would invest 1,206 in Gold And Precious on September 14, 2024 and sell it today you would earn a total of 65.00 from holding Gold And Precious or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold And Precious vs. Thrivent Government Bond
Performance |
| Timeline |
| Gold And Precious |
| Thrivent Government Bond |
Gold and Thrivent Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold and Thrivent Government
The main advantage of trading using opposite Gold and Thrivent Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold position performs unexpectedly, Thrivent Government 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 Thrivent Government will offset losses from the drop in Thrivent Government's long position.| Gold vs. World Precious Minerals | Gold vs. Near Term Tax Free | Gold vs. Us Global Investors | Gold vs. Global Resources Fund |
| Thrivent Government vs. Thrivent Partner Worldwide | Thrivent Government vs. Thrivent Partner Worldwide | Thrivent Government vs. Thrivent Large Cap | Thrivent Government vs. Thrivent Limited Maturity |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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