Correlation Between Thrivent Diversified and Edward Jones

Can any of the company-specific risk be diversified away by investing in both Thrivent Diversified and Edward Jones 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 Diversified and Edward Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thrivent Diversified Income and Edward Jones Money, you can compare the effects of market volatilities on Thrivent Diversified and Edward Jones 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 Diversified with a short position of Edward Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Diversified and Edward Jones.

Diversification Opportunities for Thrivent Diversified and Edward Jones

0.0

Correlation Coefficient

Thrivent Diversified  Edward Jones

Pay attention - limited upside

The 3 months correlation between Thrivent and Edward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Diversified Income and Edward Jones Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edward Jones Money and Thrivent Diversified 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 Diversified Income are associated (or correlated) with Edward Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edward Jones Money has no effect on the direction of Thrivent Diversified i.e., Thrivent Diversified and Edward Jones go up and down completely randomly.

Pair Corralation between Thrivent Diversified and Edward Jones

Assuming the 90 days horizon Thrivent Diversified Income is expected to generate 2.05 times more return on investment than Edward Jones. However, Thrivent Diversified is 2.05 times more volatile than Edward Jones Money. It trades about 0.12 of its potential returns per unit of risk. Edward Jones Money is currently generating about 0.09 per unit of risk. If you would invest  661.00  in Thrivent Diversified Income on September 12, 2024 and sell it today you would earn a total of  61.00  from holding Thrivent Diversified Income or generate 9.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Thrivent Diversified Income  vs.  Edward Jones Money

Thrivent Diversified

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Diversified Income are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Thrivent Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Edward Jones Money

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Edward Jones Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Edward Jones is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thrivent Diversified and Edward Jones

The main advantage of trading using opposite Thrivent Diversified and Edward Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Diversified position performs unexpectedly, Edward Jones 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 Edward Jones will offset losses from the drop in Edward Jones' long position.

The idea behind Thrivent Diversified Income and Edward Jones Money pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.