Correlation Between Thrivent Natural and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Alger Spectra 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 Natural and Alger Spectra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Natural Resources and Alger Spectra Fund, you can compare the effects of market volatilities on Thrivent Natural and Alger Spectra 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 Natural with a short position of Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Alger Spectra.
Diversification Opportunities for Thrivent Natural and Alger Spectra
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thrivent and Alger is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Alger Spectra Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra and Thrivent Natural 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 Natural Resources are associated (or correlated) with Alger Spectra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Spectra has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Alger Spectra go up and down completely randomly.
Pair Corralation between Thrivent Natural and Alger Spectra
Assuming the 90 days horizon Thrivent Natural is expected to generate 6.93 times less return on investment than Alger Spectra. But when comparing it to its historical volatility, Thrivent Natural Resources is 19.57 times less risky than Alger Spectra. It trades about 0.33 of its potential returns per unit of risk. Alger Spectra Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,385 in Alger Spectra Fund on May 29, 2025 and sell it today you would earn a total of 114.00 from holding Alger Spectra Fund or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Alger Spectra Fund
Performance |
| Timeline |
| Thrivent Natural Res |
| Alger Spectra |
Thrivent Natural and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Alger Spectra
The main advantage of trading using opposite Thrivent Natural and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Alger Spectra 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 Alger Spectra will offset losses from the drop in Alger Spectra's long position.| Thrivent Natural vs. American Century High | Thrivent Natural vs. Jpmorgan High Yield | Thrivent Natural vs. Siit High Yield | Thrivent Natural vs. Prudential High Yield |
| Alger Spectra vs. Intermediate Term Tax Free Bond | Alger Spectra vs. Old Westbury Municipal | Alger Spectra vs. Aig Government Money | Alger Spectra vs. Virtus Seix Government |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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