Correlation Between Thrivent Aggressive and Cibc Atlas

Can any of the company-specific risk be diversified away by investing in both Thrivent Aggressive and Cibc Atlas 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 Aggressive and Cibc Atlas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thrivent Aggressive Allocation and Cibc Atlas All, you can compare the effects of market volatilities on Thrivent Aggressive and Cibc Atlas 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 Aggressive with a short position of Cibc Atlas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Aggressive and Cibc Atlas.

Diversification Opportunities for Thrivent Aggressive and Cibc Atlas

0.93

Correlation Coefficient

Thrivent Aggressive  Cibc Atlas

Almost no diversification

The 3 months correlation between Thrivent and Cibc is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Aggressive Allocation and Cibc Atlas All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibc Atlas All and Thrivent Aggressive 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 Aggressive Allocation are associated (or correlated) with Cibc Atlas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibc Atlas All has no effect on the direction of Thrivent Aggressive i.e., Thrivent Aggressive and Cibc Atlas go up and down completely randomly.

Pair Corralation between Thrivent Aggressive and Cibc Atlas

Assuming the 90 days horizon Thrivent Aggressive Allocation is expected to generate 0.66 times more return on investment than Cibc Atlas. However, Thrivent Aggressive Allocation is 1.51 times less risky than Cibc Atlas. It trades about -0.07 of its potential returns per unit of risk. Cibc Atlas All is currently generating about -0.08 per unit of risk. If you would invest  1,889  in Thrivent Aggressive Allocation on December 29, 2024 and sell it today you would lose (76.00) from holding Thrivent Aggressive Allocation or give up 4.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Thrivent Aggressive Allocation  vs.  Cibc Atlas All

Thrivent Aggressive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thrivent Aggressive Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Thrivent Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cibc Atlas All

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cibc Atlas All has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Thrivent Aggressive and Cibc Atlas

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

The idea behind Thrivent Aggressive Allocation and Cibc Atlas All 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.