Correlation Between Thrivent Aggressive and Thrivent Large
Can any of the company-specific risk be diversified away by investing in both Thrivent Aggressive and Thrivent Large 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 Aggressive and Thrivent Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Aggressive Allocation and Thrivent Large Cap, you can compare the effects of market volatilities on Thrivent Aggressive and Thrivent Large 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 Aggressive with a short position of Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Aggressive and Thrivent Large.
Diversification Opportunities for Thrivent Aggressive and Thrivent Large
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Thrivent and Thrivent is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Aggressive Allocation and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap and Thrivent Aggressive 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 Aggressive Allocation are associated (or correlated) with Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Thrivent Aggressive i.e., Thrivent Aggressive and Thrivent Large go up and down completely randomly.
Pair Corralation between Thrivent Aggressive and Thrivent Large
Assuming the 90 days horizon Thrivent Aggressive is expected to generate 1.02 times less return on investment than Thrivent Large. In addition to that, Thrivent Aggressive is 1.05 times more volatile than Thrivent Large Cap. It trades about 0.03 of its total potential returns per unit of risk. Thrivent Large Cap is currently generating about 0.04 per unit of volatility. If you would invest 2,683 in Thrivent Large Cap on April 4, 2025 and sell it today you would earn a total of 401.00 from holding Thrivent Large Cap or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Aggressive Allocation vs. Thrivent Large Cap
Performance |
| Timeline |
| Thrivent Aggressive |
| Thrivent Large Cap |
Thrivent Aggressive and Thrivent Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Aggressive and Thrivent Large
The main advantage of trading using opposite Thrivent Aggressive and Thrivent Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Aggressive position performs unexpectedly, Thrivent Large 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 Large will offset losses from the drop in Thrivent Large's long position.| Thrivent Aggressive vs. Franklin Natural Resources | Thrivent Aggressive vs. Jennison Natural Resources | Thrivent Aggressive vs. Dreyfus Natural Resources | Thrivent Aggressive vs. Calvert Global Energy |
| Thrivent Large vs. Siit Emerging Markets | Thrivent Large vs. Transamerica Emerging Markets | Thrivent Large vs. Doubleline Emerging Markets | Thrivent Large vs. Investec Emerging Markets |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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