Correlation Between Thrivent High and FlexShares Quality
Can any of the company-specific risk be diversified away by investing in both Thrivent High and FlexShares Quality 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 Thrivent High and FlexShares Quality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and FlexShares Quality Dividend, you can compare the effects of market volatilities on Thrivent High and FlexShares Quality 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 Thrivent High with a short position of FlexShares Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and FlexShares Quality.
Diversification Opportunities for Thrivent High and FlexShares Quality
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thrivent and FlexShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and FlexShares Quality Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShares Quality and Thrivent High 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 Thrivent High Yield are associated (or correlated) with FlexShares Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShares Quality has no effect on the direction of Thrivent High i.e., Thrivent High and FlexShares Quality go up and down completely randomly.
Pair Corralation between Thrivent High and FlexShares Quality
Assuming the 90 days horizon Thrivent High is expected to generate 2.48 times less return on investment than FlexShares Quality. But when comparing it to its historical volatility, Thrivent High Yield is 2.35 times less risky than FlexShares Quality. It trades about 0.23 of its potential returns per unit of risk. FlexShares Quality Dividend is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 7,284 in FlexShares Quality Dividend on June 12, 2025 and sell it today you would earn a total of 582.00 from holding FlexShares Quality Dividend or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Thrivent High Yield vs. FlexShares Quality Dividend
Performance |
| Timeline |
| Thrivent High Yield |
| FlexShares Quality |
Thrivent High and FlexShares Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and FlexShares Quality
The main advantage of trading using opposite Thrivent High and FlexShares Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, FlexShares Quality 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 FlexShares Quality will offset losses from the drop in FlexShares Quality's long position.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| FlexShares Quality vs. FlexShares International Quality | FlexShares Quality vs. FlexShares International Quality | FlexShares Quality vs. FlexShares Quality Dividend |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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