Correlation Between Thrivent High and SMG Industries
Can any of the company-specific risk be diversified away by investing in both Thrivent High and SMG Industries 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 High and SMG Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and SMG Industries, you can compare the effects of market volatilities on Thrivent High and SMG Industries 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 High with a short position of SMG Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and SMG Industries.
Diversification Opportunities for Thrivent High and SMG Industries
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thrivent and SMG is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and SMG Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMG Industries and Thrivent High 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 High Yield are associated (or correlated) with SMG Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMG Industries has no effect on the direction of Thrivent High i.e., Thrivent High and SMG Industries go up and down completely randomly.
Pair Corralation between Thrivent High and SMG Industries
Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.01 times more return on investment than SMG Industries. However, Thrivent High Yield is 73.85 times less risky than SMG Industries. It trades about 0.05 of its potential returns per unit of risk. SMG Industries is currently generating about -0.12 per unit of risk. If you would invest 423.00 in Thrivent High Yield on September 16, 2024 and sell it today you would earn a total of 2.00 from holding Thrivent High Yield or generate 0.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.48% |
Values | Daily Returns |
Thrivent High Yield vs. SMG Industries
Performance |
Timeline |
Thrivent High Yield |
SMG Industries |
Thrivent High and SMG Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thrivent High and SMG Industries
The main advantage of trading using opposite Thrivent High and SMG Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, SMG Industries 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 SMG Industries will offset losses from the drop in SMG Industries' long position.Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
SMG Industries vs. Worley Parsons | SMG Industries vs. Petrofac Ltd ADR | SMG Industries vs. Saipem SpA | SMG Industries vs. Bri Chem Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |