Correlation Between Turner Emerging and Thrivent Large

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

By analyzing existing cross correlation between Turner Emerging Growth and Thrivent Large Cap, you can compare the effects of market volatilities on Turner Emerging and Thrivent Large 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 Turner Emerging with a short position of Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turner Emerging and Thrivent Large.

Diversification Opportunities for Turner Emerging and Thrivent Large

0.75

Correlation Coefficient

Turner Emerging  Thrivent Large

Poor diversification

The 3 months correlation between Turner and Thrivent is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Turner Emerging Growth and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap and Turner Emerging 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 Turner Emerging Growth are associated (or correlated) with Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Turner Emerging i.e., Turner Emerging and Thrivent Large go up and down completely randomly.

Pair Corralation between Turner Emerging and Thrivent Large

Assuming the 90 days horizon Turner Emerging Growth is expected to under-perform the Thrivent Large. In addition to that, Turner Emerging is 1.49 times more volatile than Thrivent Large Cap. It trades about -0.11 of its total potential returns per unit of risk. Thrivent Large Cap is currently generating about -0.02 per unit of volatility. If you would invest  2,698  in Thrivent Large Cap on December 30, 2024 and sell it today you would lose (34.00) from holding Thrivent Large Cap or give up 1.26% of portfolio value over 90 days.

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

Turner Emerging Growth  vs.  Thrivent Large Cap

Turner Emerging Growth

Risk-Adjusted Performance

Very Weak

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

Thrivent Large Cap

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Turner Emerging and Thrivent Large

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

The idea behind Turner Emerging Growth and Thrivent Large Cap 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.