Correlation Between Guidemark Large and Thrivent Moderate
Can any of the company-specific risk be diversified away by investing in both Guidemark Large and Thrivent Moderate 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 Guidemark Large and Thrivent Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Large Cap and Thrivent Moderate Allocation, you can compare the effects of market volatilities on Guidemark Large and Thrivent Moderate 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 Guidemark Large with a short position of Thrivent Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and Thrivent Moderate.
Diversification Opportunities for Guidemark Large and Thrivent Moderate
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Guidemark and Thrivent is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and Thrivent Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderate and Guidemark Large 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 Guidemark Large Cap are associated (or correlated) with Thrivent Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderate has no effect on the direction of Guidemark Large i.e., Guidemark Large and Thrivent Moderate go up and down completely randomly.
Pair Corralation between Guidemark Large and Thrivent Moderate
Assuming the 90 days horizon Guidemark Large is expected to generate 1.09 times less return on investment than Thrivent Moderate. In addition to that, Guidemark Large is 1.87 times more volatile than Thrivent Moderate Allocation. It trades about 0.15 of its total potential returns per unit of risk. Thrivent Moderate Allocation is currently generating about 0.31 per unit of volatility. If you would invest 1,635 in Thrivent Moderate Allocation on April 29, 2025 and sell it today you would earn a total of 31.00 from holding Thrivent Moderate Allocation or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Large Cap vs. Thrivent Moderate Allocation
Performance |
| Timeline |
| Guidemark Large Cap |
| Thrivent Moderate |
Guidemark Large and Thrivent Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Large and Thrivent Moderate
The main advantage of trading using opposite Guidemark Large and Thrivent Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Large position performs unexpectedly, Thrivent Moderate 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 Moderate will offset losses from the drop in Thrivent Moderate's long position.| Guidemark Large vs. Commonwealth Real Estate | Guidemark Large vs. Fidelity Real Estate | Guidemark Large vs. Sa Real Estate | Guidemark Large vs. Rems Real Estate |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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