Correlation Between Baron Health and Thrivent Natural
Can any of the company-specific risk be diversified away by investing in both Baron Health 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 Baron Health and Thrivent Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Thrivent Natural Resources, you can compare the effects of market volatilities on Baron Health 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 Baron Health with a short position of Thrivent Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Thrivent Natural.
Diversification Opportunities for Baron Health and Thrivent Natural
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baron and Thrivent is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care 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 Baron Health 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 Baron Health Care 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 Baron Health i.e., Baron Health and Thrivent Natural go up and down completely randomly.
Pair Corralation between Baron Health and Thrivent Natural
Assuming the 90 days horizon Baron Health Care is expected to generate 11.69 times more return on investment than Thrivent Natural. However, Baron Health is 11.69 times more volatile than Thrivent Natural Resources. It trades about 0.11 of its potential returns per unit of risk. Thrivent Natural Resources is currently generating about 0.28 per unit of risk. If you would invest 1,786 in Baron Health Care on June 11, 2025 and sell it today you would earn a total of 100.00 from holding Baron Health Care or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Health Care vs. Thrivent Natural Resources
Performance |
| Timeline |
| Baron Health Care |
| Thrivent Natural Res |
Baron Health and Thrivent Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Thrivent Natural
The main advantage of trading using opposite Baron Health and Thrivent Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health 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.| Baron Health vs. Blackrock Health Sciences | Baron Health vs. Lord Abbett Health | Baron Health vs. Fidelity Advisor Health | Baron Health vs. The Hartford Healthcare |
| Thrivent Natural vs. Calvert Bond Portfolio | Thrivent Natural vs. Ab Bond Inflation | Thrivent Natural vs. The National Tax Free | Thrivent Natural vs. Artisan High Income |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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