Correlation Between Thrivent High and Quhuo

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

Diversification Opportunities for Thrivent High and Quhuo

-0.51

Correlation Coefficient

Thrivent High  Quhuo

Excellent diversification

The 3 months correlation between Thrivent and Quhuo is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Quhuo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quhuo 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 Quhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quhuo has no effect on the direction of Thrivent High i.e., Thrivent High and Quhuo go up and down completely randomly.

Pair Corralation between Thrivent High and Quhuo

Assuming the 90 days horizon Thrivent High Yield is expected to under-perform the Quhuo. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thrivent High Yield is 11.14 times less risky than Quhuo. The mutual fund trades about -0.23 of its potential returns per unit of risk. The Quhuo is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  131.00  in Quhuo on October 5, 2024 and sell it today you would earn a total of  19.00  from holding Quhuo or generate 14.5% return on investment over 90 days.

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

Thrivent High Yield  vs.  Quhuo

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.

Quhuo

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Quhuo are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Quhuo is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Thrivent High and Quhuo

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

The idea behind Thrivent High Yield and Quhuo 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.