Correlation Between Thrivent Money and Gold Portfolio

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

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

Diversification Opportunities for Thrivent Money and Gold Portfolio

0.0

Correlation Coefficient

Thrivent Money  Gold Portfolio

Pay attention - limited upside

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

Pair Corralation between Thrivent Money and Gold Portfolio

Assuming the 90 days horizon Thrivent Money Market is expected to generate 26.27 times more return on investment than Gold Portfolio. However, Thrivent Money is 26.27 times more volatile than Gold Portfolio Fidelity. It trades about 0.09 of its potential returns per unit of risk. Gold Portfolio Fidelity is currently generating about 0.02 per unit of risk. If you would invest  400.00  in Thrivent Money Market on October 22, 2024 and sell it today you would lose (300.00) from holding Thrivent Money Market or give up 75.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	53.13%
Values	Daily Returns

Thrivent Money Market  vs.  Gold Portfolio Fidelity

Thrivent Money Market

Risk-Adjusted Performance

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Very Weak

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

Gold Portfolio Fidelity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gold Portfolio Fidelity has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Thrivent Money and Gold Portfolio

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

The idea behind Thrivent Money Market and Gold Portfolio Fidelity 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.