Correlation Between Aristotle Funds and Thrivent Natural

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

By analyzing existing cross correlation between Aristotle Funds Series and Thrivent Natural Resources, you can compare the effects of market volatilities on Aristotle Funds and Thrivent Natural 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 Aristotle Funds with a short position of Thrivent Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and Thrivent Natural.

Diversification Opportunities for Aristotle Funds and Thrivent Natural

0.0

Correlation Coefficient

Aristotle Funds  Thrivent Natural

Pay attention - limited upside

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

Pair Corralation between Aristotle Funds and Thrivent Natural

If you would invest  997.00  in Aristotle Funds Series on October 4, 2024 and sell it today you would earn a total of  438.00  from holding Aristotle Funds Series or generate 43.93% return on investment over 90 days.

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

Aristotle Funds Series  vs.  Thrivent Natural Resources

Aristotle Funds Series

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aristotle Funds Series are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Aristotle Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Thrivent Natural Res

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Aristotle Funds and Thrivent Natural

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

The idea behind Aristotle Funds Series and Thrivent Natural Resources 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.