Correlation Between Gabelli Convertible and Thrivent Natural

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

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

Diversification Opportunities for Gabelli Convertible and Thrivent Natural

0.16

Correlation Coefficient

Gabelli Convertible  Thrivent Natural

Average diversification

The 3 months correlation between Gabelli and Thrivent is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And 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 Gabelli Convertible 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 Gabelli Convertible And 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 Gabelli Convertible i.e., Gabelli Convertible and Thrivent Natural go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Thrivent Natural

Considering the 90-day investment horizon Gabelli Convertible And is expected to under-perform the Thrivent Natural. In addition to that, Gabelli Convertible is 14.72 times more volatile than Thrivent Natural Resources. It trades about -0.01 of its total potential returns per unit of risk. Thrivent Natural Resources is currently generating about 0.39 per unit of volatility. If you would invest  990.00  in Thrivent Natural Resources on December 20, 2024 and sell it today you would earn a total of  19.00  from holding Thrivent Natural Resources or generate 1.92% return on investment over 90 days.

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

Gabelli Convertible And  vs.  Thrivent Natural Resources

Gabelli Convertible And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gabelli Convertible And has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable fundamental indicators, Gabelli Convertible is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Thrivent Natural Res

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Natural Resources are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. 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 Gabelli Convertible and Thrivent Natural

The main advantage of trading using opposite Gabelli Convertible and Thrivent Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible 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 Gabelli Convertible And 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.