Correlation Between Vy Goldman and Thrivent Opportunity

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

By analyzing existing cross correlation between Vy Goldman Sachs and Thrivent Opportunity Income, you can compare the effects of market volatilities on Vy Goldman and Thrivent Opportunity 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 Vy Goldman with a short position of Thrivent Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Goldman and Thrivent Opportunity.

Diversification Opportunities for Vy Goldman and Thrivent Opportunity

0.75

Correlation Coefficient

Vy Goldman  Thrivent Opportunity

Poor diversification

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

Pair Corralation between Vy Goldman and Thrivent Opportunity

Assuming the 90 days horizon Vy Goldman Sachs is expected to under-perform the Thrivent Opportunity. In addition to that, Vy Goldman is 1.47 times more volatile than Thrivent Opportunity Income. It trades about -0.42 of its total potential returns per unit of risk. Thrivent Opportunity Income is currently generating about -0.45 per unit of volatility. If you would invest  913.00  in Thrivent Opportunity Income on October 12, 2024 and sell it today you would lose (14.00) from holding Thrivent Opportunity Income or give up 1.53% of portfolio value over 90 days.

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

Vy Goldman Sachs  vs.  Thrivent Opportunity Income

Vy Goldman Sachs

Risk-Adjusted Performance

0 of 100

Very Weak

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

Thrivent Opportunity

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Vy Goldman and Thrivent Opportunity

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

The idea behind Vy Goldman Sachs and Thrivent Opportunity Income 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.