Correlation Between Thrivent High and Fidelity Sai

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

Diversification Opportunities for Thrivent High and Fidelity Sai

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Thrivent and Fidelity is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Fidelity Sai Long Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Long 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 Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Long has no effect on the direction of Thrivent High i.e., Thrivent High and Fidelity Sai go up and down completely randomly.

Pair Corralation between Thrivent High and Fidelity Sai

Assuming the 90 days horizon Thrivent High is expected to generate 2.43 times less return on investment than Fidelity Sai. But when comparing it to its historical volatility, Thrivent High Yield is 3.23 times less risky than Fidelity Sai. It trades about 0.36 of its potential returns per unit of risk. Fidelity Sai Long Term is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  672.00  in Fidelity Sai Long Term on February 24, 2024 and sell it today you would earn a total of  24.00  from holding Fidelity Sai Long Term or generate 3.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Thrivent High Yield  vs.  Fidelity Sai Long Term

 Performance 
       Timeline  
Thrivent High Yield 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fidelity Sai Long 

Risk-Adjusted Performance

0 of 100

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

Thrivent High and Fidelity Sai Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thrivent High and Fidelity Sai

The main advantage of trading using opposite Thrivent High and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Fidelity Sai 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 Fidelity Sai will offset losses from the drop in Fidelity Sai's long position.
The idea behind Thrivent High Yield and Fidelity Sai Long Term 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets