Correlation Between Thrivent Natural and Global Resources
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Global Resources 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 Global Resources 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 Global Resources Fund, you can compare the effects of market volatilities on Thrivent Natural and Global Resources 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 Global Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Global Resources.
Diversification Opportunities for Thrivent Natural and Global Resources
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and Global is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Global Resources Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Resources 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 Global Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Resources has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Global Resources go up and down completely randomly.
Pair Corralation between Thrivent Natural and Global Resources
Assuming the 90 days horizon Thrivent Natural is expected to generate 10.14 times less return on investment than Global Resources. But when comparing it to its historical volatility, Thrivent Natural Resources is 9.01 times less risky than Global Resources. It trades about 0.28 of its potential returns per unit of risk. Global Resources Fund is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Global Resources Fund on April 19, 2025 and sell it today you would earn a total of 66.00 from holding Global Resources Fund or generate 17.74% 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. Global Resources Fund
Performance |
Timeline |
Thrivent Natural Res |
Global Resources |
Thrivent Natural and Global Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thrivent Natural and Global Resources
The main advantage of trading using opposite Thrivent Natural and Global Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Global Resources 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 Global Resources will offset losses from the drop in Global Resources' long position.Thrivent Natural vs. Jhancock Global Equity | Thrivent Natural vs. Ms Global Fixed | Thrivent Natural vs. Tweedy Browne Global | Thrivent Natural vs. Investec Global Franchise |
Global Resources vs. Hennessy Bp Energy | Global Resources vs. Invesco Energy Fund | Global Resources vs. Franklin Natural Resources | Global Resources vs. Fidelity Advisor Energy |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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