Correlation Between Thrivent Natural and Banking Fund
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Banking Fund 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 Banking Fund 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 Banking Fund Class, you can compare the effects of market volatilities on Thrivent Natural and Banking Fund 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 Banking Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Banking Fund.
Diversification Opportunities for Thrivent Natural and Banking Fund
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thrivent and Banking is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Banking Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banking Fund Class 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 Banking Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banking Fund Class has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Banking Fund go up and down completely randomly.
Pair Corralation between Thrivent Natural and Banking Fund
Assuming the 90 days horizon Thrivent Natural is expected to generate 8.95 times less return on investment than Banking Fund. But when comparing it to its historical volatility, Thrivent Natural Resources is 13.89 times less risky than Banking Fund. It trades about 0.28 of its potential returns per unit of risk. Banking Fund Class is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 9,156 in Banking Fund Class on June 6, 2025 and sell it today you would earn a total of 1,116 from holding Banking Fund Class or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent Natural Resources vs. Banking Fund Class
Performance |
| Timeline |
| Thrivent Natural Res |
| Banking Fund Class |
Thrivent Natural and Banking Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent Natural and Banking Fund
The main advantage of trading using opposite Thrivent Natural and Banking Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Banking Fund 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 Banking Fund will offset losses from the drop in Banking Fund's long position.| Thrivent Natural vs. Alliancebernstein Global Highome | Thrivent Natural vs. Morningstar Global Income | Thrivent Natural vs. Dreyfusstandish Global Fixed | Thrivent Natural vs. The Gabelli Global |
| Banking Fund vs. Tiaa Cref Lifestyle Conservative | Banking Fund vs. Massmutual Premier Diversified | Banking Fund vs. Madison Diversified Income | Banking Fund vs. Blackrock Conservative Prprdptfinstttnl |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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