Correlation Between Oil Gas and Thrivent Limited

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

By analyzing existing cross correlation between Oil Gas Ultrasector and Thrivent Limited Maturity, you can compare the effects of market volatilities on Oil Gas and Thrivent Limited 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 Oil Gas with a short position of Thrivent Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Gas and Thrivent Limited.

Diversification Opportunities for Oil Gas and Thrivent Limited

-0.22

Correlation Coefficient

Oil Gas  Thrivent Limited

Very good diversification

The 3 months correlation between Oil and Thrivent is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oil Gas Ultrasector and Thrivent Limited Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Limited Maturity and Oil Gas 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 Oil Gas Ultrasector are associated (or correlated) with Thrivent Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Limited Maturity has no effect on the direction of Oil Gas i.e., Oil Gas and Thrivent Limited go up and down completely randomly.

Pair Corralation between Oil Gas and Thrivent Limited

Assuming the 90 days horizon Oil Gas Ultrasector is expected to generate 13.27 times more return on investment than Thrivent Limited. However, Oil Gas is 13.27 times more volatile than Thrivent Limited Maturity. It trades about 0.07 of its potential returns per unit of risk. Thrivent Limited Maturity is currently generating about 0.11 per unit of risk. If you would invest  3,591  in Oil Gas Ultrasector on October 23, 2024 and sell it today you would earn a total of  242.00  from holding Oil Gas Ultrasector or generate 6.74% return on investment over 90 days.

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

Oil Gas Ultrasector  vs.  Thrivent Limited Maturity

Oil Gas Ultrasector

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oil Gas Ultrasector are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Oil Gas may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Thrivent Limited Maturity

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Limited Maturity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent Limited is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oil Gas and Thrivent Limited

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

The idea behind Oil Gas Ultrasector and Thrivent Limited Maturity 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.