Correlation Between Thrivent Natural and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Fidelity Freedom 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 Fidelity Freedom 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 Fidelity Freedom Blend, you can compare the effects of market volatilities on Thrivent Natural and Fidelity Freedom 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 Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Fidelity Freedom.
Diversification Opportunities for Thrivent Natural and Fidelity Freedom
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and Fidelity is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend 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 Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Thrivent Natural and Fidelity Freedom
Assuming the 90 days horizon Thrivent Natural is expected to generate 8.93 times less return on investment than Fidelity Freedom. But when comparing it to its historical volatility, Thrivent Natural Resources is 8.01 times less risky than Fidelity Freedom. It trades about 0.25 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,126 in Fidelity Freedom Blend on June 2, 2025 and sell it today you would earn a total of 41.00 from holding Fidelity Freedom Blend or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Fidelity Freedom Blend
Performance |
| Timeline |
| Thrivent Natural Res |
| Fidelity Freedom Blend |
Thrivent Natural and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Fidelity Freedom
The main advantage of trading using opposite Thrivent Natural and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Fidelity Freedom 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 Fidelity Freedom will offset losses from the drop in Fidelity Freedom's long position.| Thrivent Natural vs. Invesco Diversified Dividend | Thrivent Natural vs. Guidepath Conservative Income | Thrivent Natural vs. Victory Diversified Stock | Thrivent Natural vs. Lord Abbett Diversified |
| Fidelity Freedom vs. Calamos Global Growth | Fidelity Freedom vs. Ab Global Risk | Fidelity Freedom vs. The Hartford Global | Fidelity Freedom vs. Alliancebernstein Global Highome |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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