Correlation Between Voya Large-cap and Thrivent Money

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

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

Diversification Opportunities for Voya Large-cap and Thrivent Money

0.0

Correlation Coefficient

Voya Large-cap  Thrivent Money

Pay attention - limited upside

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

Pair Corralation between Voya Large-cap and Thrivent Money

If you would invest  5,573  in Voya Large Cap Growth on October 7, 2024 and sell it today you would earn a total of  287.00  from holding Voya Large Cap Growth or generate 5.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.35%
Values	Daily Returns

Voya Large Cap Growth  vs.  Thrivent Money Market

Voya Large Cap

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Large Cap Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Large-cap may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Thrivent Money Market

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Voya Large-cap and Thrivent Money

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

The idea behind Voya Large Cap Growth and Thrivent Money Market 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.