Correlation Between Thrivent Money and Real Estate

Can any of the company-specific risk be diversified away by investing in both Thrivent Money and Real Estate 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 Real Estate 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 Real Estate Securities, you can compare the effects of market volatilities on Thrivent Money and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Money and Real Estate.

Diversification Opportunities for Thrivent Money and Real Estate

0.0

Correlation Coefficient

Thrivent Money  Real Estate

Pay attention - limited upside

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

Pair Corralation between Thrivent Money and Real Estate

Assuming the 90 days horizon Thrivent Money Market is expected to generate 41.86 times more return on investment than Real Estate. However, Thrivent Money is 41.86 times more volatile than Real Estate Securities. It trades about 0.08 of its potential returns per unit of risk. Real Estate Securities is currently generating about 0.03 per unit of risk. If you would invest  481.00  in Thrivent Money Market on October 3, 2024 and sell it today you would lose (381.00) from holding Thrivent Money Market or give up 79.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	40.05%
Values	Daily Returns

Thrivent Money Market  vs.  Real Estate Securities

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.

Real Estate Securities

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Real Estate Securities 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 Money and Real Estate

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

The idea behind Thrivent Money Market and Real Estate Securities 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..