Correlation Between 22nd Century and Thrivent High
Can any of the company-specific risk be diversified away by investing in both 22nd Century and Thrivent High 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 22nd Century and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 22nd Century Group and Thrivent High Yield, you can compare the effects of market volatilities on 22nd Century and Thrivent High 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 22nd Century with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of 22nd Century and Thrivent High.
Diversification Opportunities for 22nd Century and Thrivent High
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 22nd and Thrivent is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding 22nd Century Group and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and 22nd Century 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 22nd Century Group are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of 22nd Century i.e., 22nd Century and Thrivent High go up and down completely randomly.
Pair Corralation between 22nd Century and Thrivent High
Given the investment horizon of 90 days 22nd Century Group is expected to under-perform the Thrivent High. In addition to that, 22nd Century is 48.06 times more volatile than Thrivent High Yield. It trades about -0.09 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.16 per unit of volatility. If you would invest 386.00 in Thrivent High Yield on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Thrivent High Yield or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
22nd Century Group vs. Thrivent High Yield
Performance |
| Timeline |
| 22nd Century Group |
| Thrivent High Yield |
22nd Century and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 22nd Century and Thrivent High
The main advantage of trading using opposite 22nd Century and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 22nd Century position performs unexpectedly, Thrivent High 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 High will offset losses from the drop in Thrivent High's long position.| 22nd Century vs. Turning Point Brands | 22nd Century vs. Green Globe International | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. Kaival Brands Innovations |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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