Correlation Between Thrivent High and MMTEC

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

Diversification Opportunities for Thrivent High and MMTEC

0.11

Correlation Coefficient

Thrivent High  MMTEC

Average diversification

The 3 months correlation between Thrivent and MMTEC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc 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 MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Thrivent High i.e., Thrivent High and MMTEC go up and down completely randomly.

Pair Corralation between Thrivent High and MMTEC

Assuming the 90 days horizon Thrivent High Yield is expected to under-perform the MMTEC. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thrivent High Yield is 57.93 times less risky than MMTEC. The mutual fund trades about -0.24 of its potential returns per unit of risk. The MMTEC Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  174.00  in MMTEC Inc on October 6, 2024 and sell it today you would lose (6.00) from holding MMTEC Inc or give up 3.45% of portfolio value over 90 days.

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

Thrivent High Yield  vs.  MMTEC Inc

Thrivent High Yield

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thrivent High Yield has generated negative risk-adjusted returns adding no value to fund investors. 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.

MMTEC Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MMTEC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Thrivent High and MMTEC

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

The idea behind Thrivent High Yield and MMTEC Inc 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.