Correlation Between Investec Emerging and Thrivent Moderately
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Thrivent Moderately 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 Investec Emerging and Thrivent Moderately into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Thrivent Moderately Servative, you can compare the effects of market volatilities on Investec Emerging and Thrivent Moderately 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 Investec Emerging with a short position of Thrivent Moderately. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Thrivent Moderately.
Diversification Opportunities for Investec Emerging and Thrivent Moderately
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investec and Thrivent is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Thrivent Moderately Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderately and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Thrivent Moderately. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderately has no effect on the direction of Investec Emerging i.e., Investec Emerging and Thrivent Moderately go up and down completely randomly.
Pair Corralation between Investec Emerging and Thrivent Moderately
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 1.77 times more return on investment than Thrivent Moderately. However, Investec Emerging is 1.77 times more volatile than Thrivent Moderately Servative. It trades about 0.35 of its potential returns per unit of risk. Thrivent Moderately Servative is currently generating about 0.28 per unit of risk. If you would invest 1,059 in Investec Emerging Markets on April 17, 2025 and sell it today you would earn a total of 180.00 from holding Investec Emerging Markets or generate 17.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Investec Emerging Markets vs. Thrivent Moderately Servative
Performance |
| Timeline |
| Investec Emerging Markets |
| Thrivent Moderately |
Investec Emerging and Thrivent Moderately Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Thrivent Moderately
The main advantage of trading using opposite Investec Emerging and Thrivent Moderately positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Thrivent Moderately 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 Thrivent Moderately will offset losses from the drop in Thrivent Moderately's long position.| Investec Emerging vs. The Gabelli Money | Investec Emerging vs. Prudential Government Money | Investec Emerging vs. Pioneer Money Market | Investec Emerging vs. Blackrock Exchange Portfolio |
| Thrivent Moderately vs. Short Term Government Fund | Thrivent Moderately vs. Elfun Government Money | Thrivent Moderately vs. Franklin Government Securities | Thrivent Moderately vs. Dreyfus Government Cash |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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