Correlation Between IShares China and Thrivent High
Can any of the company-specific risk be diversified away by investing in both IShares China and Thrivent High 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 IShares China and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares China Large Cap and Thrivent High Yield, you can compare the effects of market volatilities on IShares China and Thrivent High 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 IShares China with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares China and Thrivent High.
Diversification Opportunities for IShares China and Thrivent High
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Thrivent is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding iShares China Large Cap and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and IShares China 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 iShares China Large Cap are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of IShares China i.e., IShares China and Thrivent High go up and down completely randomly.
Pair Corralation between IShares China and Thrivent High
Considering the 90-day investment horizon iShares China Large Cap is expected to generate 6.84 times more return on investment than Thrivent High. However, IShares China is 6.84 times more volatile than Thrivent High Yield. It trades about 0.15 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.05 per unit of risk. If you would invest 2,391 in iShares China Large Cap on February 26, 2024 and sell it today you would earn a total of 367.00 from holding iShares China Large Cap or generate 15.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.48% |
Values | Daily Returns |
iShares China Large Cap vs. Thrivent High Yield
Performance |
Timeline |
iShares China Large |
Thrivent High Yield |
IShares China and Thrivent High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares China and Thrivent High
The main advantage of trading using opposite IShares China and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares China position performs unexpectedly, Thrivent High 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 High will offset losses from the drop in Thrivent High's long position.IShares China vs. iShares MSCI Brazil | IShares China vs. iShares MSCI Emerging | IShares China vs. iShares MSCI Japan | IShares China vs. iShares MSCI Hong |
Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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