Correlation Between Americafirst Monthly and Thrivent Natural
Can any of the company-specific risk be diversified away by investing in both Americafirst Monthly and Thrivent Natural 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 Americafirst Monthly and Thrivent Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Monthly Risk On and Thrivent Natural Resources, you can compare the effects of market volatilities on Americafirst Monthly and Thrivent Natural 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 Americafirst Monthly with a short position of Thrivent Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Monthly and Thrivent Natural.
Diversification Opportunities for Americafirst Monthly and Thrivent Natural
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Americafirst and Thrivent is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Monthly Risk On and Thrivent Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Natural Res and Americafirst Monthly 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 Americafirst Monthly Risk On are associated (or correlated) with Thrivent Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Natural Res has no effect on the direction of Americafirst Monthly i.e., Americafirst Monthly and Thrivent Natural go up and down completely randomly.
Pair Corralation between Americafirst Monthly and Thrivent Natural
Assuming the 90 days horizon Americafirst Monthly Risk On is expected to generate 5.39 times more return on investment than Thrivent Natural. However, Americafirst Monthly is 5.39 times more volatile than Thrivent Natural Resources. It trades about 0.43 of its potential returns per unit of risk. Thrivent Natural Resources is currently generating about 0.29 per unit of risk. If you would invest 1,327 in Americafirst Monthly Risk On on April 24, 2025 and sell it today you would earn a total of 183.00 from holding Americafirst Monthly Risk On or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Monthly Risk On vs. Thrivent Natural Resources
Performance |
| Timeline |
| Americafirst Monthly |
| Thrivent Natural Res |
Americafirst Monthly and Thrivent Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Monthly and Thrivent Natural
The main advantage of trading using opposite Americafirst Monthly and Thrivent Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Monthly position performs unexpectedly, Thrivent Natural 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 Natural will offset losses from the drop in Thrivent Natural's long position.The idea behind Americafirst Monthly Risk On and Thrivent Natural Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Directory module to find actively traded commodities issued by global exchanges.
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