Correlation Between American Express and Thrivent High
Can any of the company-specific risk be diversified away by investing in both American Express 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 American Express and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Thrivent High Yield, you can compare the effects of market volatilities on American Express 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 American Express with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Thrivent High.
Diversification Opportunities for American Express and Thrivent High
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Thrivent is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding American Express 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 American Express 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 American Express 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 American Express i.e., American Express and Thrivent High go up and down completely randomly.
Pair Corralation between American Express and Thrivent High
Considering the 90-day investment horizon American Express is expected to generate 7.42 times more return on investment than Thrivent High. However, American Express is 7.42 times more volatile than Thrivent High Yield. It trades about 0.16 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.1 per unit of risk. If you would invest 30,627 in American Express on August 18, 2025 and sell it today you would earn a total of 5,091 from holding American Express or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Thrivent High Yield
Performance |
| Timeline |
| American Express |
| Thrivent High Yield |
American Express and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Thrivent High
The main advantage of trading using opposite American Express and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express 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.| American Express vs. Mastercard | American Express vs. Visa Class A | American Express vs. Capital One Financial | American Express vs. PayPal Holdings |
| Thrivent High vs. T Rowe Price | Thrivent High vs. Eaton Vance Richard | Thrivent High vs. Eaton Vance Richard | Thrivent High vs. Meridian Trarian Fund |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |