Correlation Between Smead Value and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Smead Value 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 Smead Value and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smead Value Fund and Thrivent High Yield, you can compare the effects of market volatilities on Smead Value 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 Smead Value with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Value and Thrivent High.
Diversification Opportunities for Smead Value and Thrivent High
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Smead and Thrivent is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Smead Value Fund 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 Smead Value 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 Smead Value Fund 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 Smead Value i.e., Smead Value and Thrivent High go up and down completely randomly.
Pair Corralation between Smead Value and Thrivent High
Assuming the 90 days horizon Smead Value Fund is expected to generate 3.44 times more return on investment than Thrivent High. However, Smead Value is 3.44 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 0.16 per unit of risk. If you would invest 6,818 in Smead Value Fund on February 23, 2024 and sell it today you would earn a total of 1,307 from holding Smead Value Fund or generate 19.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Smead Value Fund vs. Thrivent High Yield
Performance |
Timeline |
Smead Value Fund |
Thrivent High Yield |
Smead Value and Thrivent High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Smead Value and Thrivent High
The main advantage of trading using opposite Smead Value and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Value 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.Smead Value vs. Vanguard Value Index | Smead Value vs. Dodge Cox Stock | Smead Value vs. American Mutual Fund | Smead Value vs. American Mutual Fund |
Thrivent High vs. Vanguard High Yield Corporate | Thrivent High vs. Vanguard High Yield Porate | Thrivent High vs. Blackrock Hi Yld | Thrivent High vs. Blackrock High Yield |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |