Correlation Between Thrivent High and Carlyle
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Carlyle 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 Carlyle 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 Carlyle Group, you can compare the effects of market volatilities on Thrivent High and Carlyle 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 Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Carlyle.
Diversification Opportunities for Thrivent High and Carlyle
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thrivent and Carlyle is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group 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 Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of Thrivent High i.e., Thrivent High and Carlyle go up and down completely randomly.
Pair Corralation between Thrivent High and Carlyle
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.1 times more return on investment than Carlyle. However, Thrivent High Yield is 10.16 times less risky than Carlyle. It trades about -0.24 of its potential returns per unit of risk. Carlyle Group is currently generating about -0.19 per unit of risk. If you would invest 426.00 in Thrivent High Yield on September 24, 2024 and sell it today you would lose (4.00) from holding Thrivent High Yield or give up 0.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Thrivent High Yield vs. Carlyle Group
Performance |
Timeline |
Thrivent High Yield |
Carlyle Group |
Thrivent High and Carlyle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thrivent High and Carlyle
The main advantage of trading using opposite Thrivent High and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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