Correlation Between Thrivent Natural and Oklahoma College

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

By analyzing existing cross correlation between Thrivent Natural Resources and Oklahoma College Savings, you can compare the effects of market volatilities on Thrivent Natural and Oklahoma College 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 Natural with a short position of Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Oklahoma College.

Diversification Opportunities for Thrivent Natural and Oklahoma College

0.28

Correlation Coefficient

Thrivent Natural  Oklahoma College

Modest diversification

The 3 months correlation between Thrivent and Oklahoma is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings and Thrivent Natural 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 Natural Resources are associated (or correlated) with Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Oklahoma College go up and down completely randomly.

Pair Corralation between Thrivent Natural and Oklahoma College

Assuming the 90 days horizon Thrivent Natural Resources is expected to under-perform the Oklahoma College. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thrivent Natural Resources is 3.92 times less risky than Oklahoma College. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Oklahoma College Savings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,687  in Oklahoma College Savings on October 11, 2024 and sell it today you would lose (6.00) from holding Oklahoma College Savings or give up 0.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Thrivent Natural Resources  vs.  Oklahoma College Savings

Thrivent Natural Res

Risk-Adjusted Performance

0 of 100

Very Weak

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

Oklahoma College Savings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oklahoma College Savings are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Oklahoma College may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Thrivent Natural and Oklahoma College

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

The idea behind Thrivent Natural Resources and Oklahoma College Savings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.