Correlation Between Thrivent Aggressive and Saat E

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

Diversification Opportunities for Thrivent Aggressive and Saat E

0.86

Correlation Coefficient

Thrivent Aggressive  Saat E

Very poor diversification

The 3 months correlation between Thrivent and Saat is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Aggressive Allocation and Saat E Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat E Market 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 Saat E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat E Market has no effect on the direction of Thrivent Aggressive i.e., Thrivent Aggressive and Saat E go up and down completely randomly.

Pair Corralation between Thrivent Aggressive and Saat E

Assuming the 90 days horizon Thrivent Aggressive is expected to generate 1.15 times less return on investment than Saat E. In addition to that, Thrivent Aggressive is 1.1 times more volatile than Saat E Market. It trades about 0.17 of its total potential returns per unit of risk. Saat E Market is currently generating about 0.22 per unit of volatility. If you would invest  1,962  in Saat E Market on October 24, 2024 and sell it today you would earn a total of  52.00  from holding Saat E Market or generate 2.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	94.74%
Values	Daily Returns

Thrivent Aggressive Allocation  vs.  Saat E Market

Thrivent Aggressive

Risk-Adjusted Performance

0 of 100

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.

Saat E Market

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saat E Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic 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 Saat E

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

The idea behind Thrivent Aggressive Allocation and Saat E Market 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 Global Correlations module to find global opportunities by holding instruments from different markets.