Correlation Between Thrivent Large and Franklin Gold

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

By analyzing existing cross correlation between Thrivent Large Cap and Franklin Gold Precious, you can compare the effects of market volatilities on Thrivent Large and Franklin Gold 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 Large with a short position of Franklin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Large and Franklin Gold.

Diversification Opportunities for Thrivent Large and Franklin Gold

0.0

Correlation Coefficient

Thrivent Large  Franklin Gold

Pay attention - limited upside

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

Pair Corralation between Thrivent Large and Franklin Gold

If you would invest (100.00) in Thrivent Large Cap on October 24, 2024 and sell it today you would earn a total of  100.00  from holding Thrivent Large Cap or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Thrivent Large Cap  vs.  Franklin Gold Precious

Thrivent Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

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

Franklin Gold Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Franklin Gold Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Thrivent Large and Franklin Gold

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

The idea behind Thrivent Large Cap and Franklin Gold Precious 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.