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 Index, 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
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and Fidelity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Fidelity Freedom Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Index 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 Index 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 6.8 times less return on investment than Fidelity Freedom. But when comparing it to its historical volatility, Thrivent Natural Resources is 7.19 times less risky than Fidelity Freedom. It trades about 0.25 of its potential returns per unit of risk. Fidelity Freedom Index is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,911 in Fidelity Freedom Index on June 12, 2025 and sell it today you would earn a total of 80.00 from holding Fidelity Freedom Index or generate 2.75% 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 Index
Performance |
| Timeline |
| Thrivent Natural Res |
| Fidelity Freedom Index |
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. Calvert Bond Portfolio | Thrivent Natural vs. Ab Bond Inflation | Thrivent Natural vs. The National Tax Free | Thrivent Natural vs. Artisan High Income |
| Fidelity Freedom vs. The National Tax Free | Fidelity Freedom vs. Siit High Yield | Fidelity Freedom vs. Ambrus Core Bond | Fidelity Freedom vs. Versatile Bond Portfolio |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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