Correlation Between SPDR SP and Thrivent Mid
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Thrivent Mid 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 SPDR SP and Thrivent Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Thrivent Mid Cap, you can compare the effects of market volatilities on SPDR SP and Thrivent Mid 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 SPDR SP with a short position of Thrivent Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Thrivent Mid.
Diversification Opportunities for SPDR SP and Thrivent Mid
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Thrivent is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Thrivent Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Mid Cap and SPDR SP 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 SPDR SP 500 are associated (or correlated) with Thrivent Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Mid Cap has no effect on the direction of SPDR SP i.e., SPDR SP and Thrivent Mid go up and down completely randomly.
Pair Corralation between SPDR SP and Thrivent Mid
Considering the 90-day investment horizon SPDR SP 500 is expected to generate 0.61 times more return on investment than Thrivent Mid. However, SPDR SP 500 is 1.64 times less risky than Thrivent Mid. It trades about 0.5 of its potential returns per unit of risk. Thrivent Mid Cap is currently generating about 0.24 per unit of risk. If you would invest 60,015 in SPDR SP 500 on April 23, 2025 and sell it today you would earn a total of 2,871 from holding SPDR SP 500 or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Thrivent Mid Cap
Performance |
| Timeline |
| SPDR SP 500 |
| Thrivent Mid Cap |
SPDR SP and Thrivent Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Thrivent Mid
The main advantage of trading using opposite SPDR SP and Thrivent Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Thrivent Mid 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 Mid will offset losses from the drop in Thrivent Mid's long position.| SPDR SP vs. Vanguard SP 500 | SPDR SP vs. FT Vest Equity | SPDR SP vs. Zillow Group Class | SPDR SP vs. Northern Lights |
| Thrivent Mid vs. Thrivent Large Cap | Thrivent Mid vs. Thrivent Small Cap | Thrivent Mid vs. Thrivent Large Cap | Thrivent Mid vs. Thrivent Large Cap |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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