Correlation Between Thrivent High and Blackrock Silver

Can any of the company-specific risk be diversified away by investing in both Thrivent High and Blackrock Silver 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 Blackrock Silver 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 Blackrock Silver Corp, you can compare the effects of market volatilities on Thrivent High and Blackrock Silver 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 Blackrock Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Blackrock Silver.

Diversification Opportunities for Thrivent High and Blackrock Silver

-0.53

Correlation Coefficient

Thrivent High  Blackrock Silver

Excellent diversification

The 3 months correlation between Thrivent and Blackrock is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Blackrock Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Silver Corp 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 Blackrock Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Silver Corp has no effect on the direction of Thrivent High i.e., Thrivent High and Blackrock Silver go up and down completely randomly.

Pair Corralation between Thrivent High and Blackrock Silver

Assuming the 90 days horizon Thrivent High is expected to generate 2.3 times less return on investment than Blackrock Silver. But when comparing it to its historical volatility, Thrivent High Yield is 20.23 times less risky than Blackrock Silver. It trades about 0.04 of its potential returns per unit of risk. Blackrock Silver Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  26.00  in Blackrock Silver Corp on December 31, 2024 and sell it today you would lose (1.00) from holding Blackrock Silver Corp or give up 3.85% of portfolio value over 90 days.

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

Thrivent High Yield  vs.  Blackrock Silver Corp

Thrivent High Yield

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 3 (%) 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.

Blackrock Silver Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Blackrock Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Blackrock Silver is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Thrivent High and Blackrock Silver

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

The idea behind Thrivent High Yield and Blackrock Silver Corp 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.