Correlation Between Thrivent High and WesBanco
Can any of the company-specific risk be diversified away by investing in both Thrivent High and WesBanco 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 WesBanco 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 WesBanco, you can compare the effects of market volatilities on Thrivent High and WesBanco 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 WesBanco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and WesBanco.
Diversification Opportunities for Thrivent High and WesBanco
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thrivent and WesBanco is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and WesBanco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WesBanco 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 WesBanco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WesBanco has no effect on the direction of Thrivent High i.e., Thrivent High and WesBanco go up and down completely randomly.
Pair Corralation between Thrivent High and WesBanco
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.14 times more return on investment than WesBanco. However, Thrivent High Yield is 7.02 times less risky than WesBanco. It trades about 0.11 of its potential returns per unit of risk. WesBanco is currently generating about 0.01 per unit of risk. If you would invest 361.00 in Thrivent High Yield on September 5, 2024 and sell it today you would earn a total of 65.00 from holding Thrivent High Yield or generate 18.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Thrivent High Yield vs. WesBanco
Performance |
Timeline |
Thrivent High Yield |
WesBanco |
Thrivent High and WesBanco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thrivent High and WesBanco
The main advantage of trading using opposite Thrivent High and WesBanco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, WesBanco 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 WesBanco will offset losses from the drop in WesBanco'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 |
WesBanco vs. Finward Bancorp | WesBanco vs. Aquagold International | WesBanco vs. Thrivent High Yield | WesBanco vs. Morningstar Unconstrained Allocation |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |