Correlation Between Thrivent Natural and Short Oil

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Thrivent Natural and Short Oil 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 Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Thrivent Natural and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Short Oil.

Diversification Opportunities for Thrivent Natural and Short Oil

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Thrivent and Short is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Short Oil go up and down completely randomly.

Pair Corralation between Thrivent Natural and Short Oil

Assuming the 90 days horizon Thrivent Natural is expected to generate 1.14 times less return on investment than Short Oil. But when comparing it to its historical volatility, Thrivent Natural Resources is 16.39 times less risky than Short Oil. It trades about 0.24 of its potential returns per unit of risk. Short Oil Gas is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,469  in Short Oil Gas on September 18, 2024 and sell it today you would earn a total of  12.00  from holding Short Oil Gas or generate 0.82% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Thrivent Natural Resources  vs.  Short Oil Gas

 Performance 
       Timeline  
Thrivent Natural Res 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Natural Resources are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. 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.
Short Oil Gas 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Short Oil Gas are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Short Oil is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Thrivent Natural and Short Oil Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thrivent Natural and Short Oil

The main advantage of trading using opposite Thrivent Natural and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Natural position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.
The idea behind Thrivent Natural Resources and Short Oil Gas 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Bonds Directory
Find actively traded corporate debentures issued by US companies
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments