Correlation Between Thrivent Natural and Riversource Series

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

Diversification Opportunities for Thrivent Natural and Riversource Series

0.0

Correlation Coefficient

Thrivent Natural  Riversource Series

Pay attention - limited upside

The 3 months correlation between Thrivent and Riversource is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Riversource Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riversource Series Trust 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 Riversource Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riversource Series Trust has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Riversource Series go up and down completely randomly.

Pair Corralation between Thrivent Natural and Riversource Series

If you would invest  960.00  in Thrivent Natural Resources on October 7, 2024 and sell it today you would earn a total of  34.00  from holding Thrivent Natural Resources or generate 3.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Thrivent Natural Resources  vs.  Riversource Series Trust

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 current stock price disturbance, may contribute to short-term losses for the investors.

Riversource Series Trust

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Thrivent Natural and Riversource Series

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

The idea behind Thrivent Natural Resources and Riversource Series Trust 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.