Correlation Between Thrivent Partner and Turner Emerging

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

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

Diversification Opportunities for Thrivent Partner and Turner Emerging

-0.45

Correlation Coefficient

Thrivent Partner  Turner Emerging

Very good diversification

The 3 months correlation between Thrivent and Turner is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Partner Worldwide and Turner Emerging Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turner Emerging Growth and Thrivent Partner 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 Partner Worldwide are associated (or correlated) with Turner Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turner Emerging Growth has no effect on the direction of Thrivent Partner i.e., Thrivent Partner and Turner Emerging go up and down completely randomly.

Pair Corralation between Thrivent Partner and Turner Emerging

Assuming the 90 days horizon Thrivent Partner Worldwide is expected to generate 0.64 times more return on investment than Turner Emerging. However, Thrivent Partner Worldwide is 1.55 times less risky than Turner Emerging. It trades about 0.14 of its potential returns per unit of risk. Turner Emerging Growth is currently generating about -0.09 per unit of risk. If you would invest  1,036  in Thrivent Partner Worldwide on December 27, 2024 and sell it today you would earn a total of  72.00  from holding Thrivent Partner Worldwide or generate 6.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Thrivent Partner Worldwide  vs.  Turner Emerging Growth

Thrivent Partner Wor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Partner Worldwide are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Thrivent Partner may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

Pair Trading with Thrivent Partner and Turner Emerging

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

The idea behind Thrivent Partner Worldwide and Turner Emerging Growth 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.