Correlation Between Thrivent High and Alpha En

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

By analyzing existing cross correlation between Thrivent High Yield and alpha En, you can compare the effects of market volatilities on Thrivent High and Alpha En 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 High with a short position of Alpha En. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Alpha En.

Diversification Opportunities for Thrivent High and Alpha En

0.73

Correlation Coefficient

Thrivent High  Alpha En

Poor diversification

The 3 months correlation between Thrivent and Alpha is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and alpha En in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alpha En and Thrivent High 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 High Yield are associated (or correlated) with Alpha En. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alpha En has no effect on the direction of Thrivent High i.e., Thrivent High and Alpha En go up and down completely randomly.

Pair Corralation between Thrivent High and Alpha En

Assuming the 90 days horizon Thrivent High is expected to generate 49.45 times less return on investment than Alpha En. But when comparing it to its historical volatility, Thrivent High Yield is 61.97 times less risky than Alpha En. It trades about 0.16 of its potential returns per unit of risk. alpha En is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.01  in alpha En on December 23, 2024 and sell it today you would earn a total of  0.01  from holding alpha En or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.31%
Values	Daily Returns

Thrivent High Yield  vs.  alpha En

Thrivent High Yield

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

alpha En

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in alpha En are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Alpha En exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thrivent High and Alpha En

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

The idea behind Thrivent High Yield and alpha En 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.