Correlation Between Thrivent High and VanEck LongFlat

Can any of the company-specific risk be diversified away by investing in both Thrivent High and VanEck LongFlat 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 VanEck LongFlat 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 VanEck LongFlat Trend, you can compare the effects of market volatilities on Thrivent High and VanEck LongFlat 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 VanEck LongFlat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and VanEck LongFlat.

Diversification Opportunities for Thrivent High and VanEck LongFlat

0.86

Correlation Coefficient

Thrivent High  VanEck LongFlat

Very poor diversification

The 3 months correlation between Thrivent and VanEck is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and VanEck LongFlat Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck LongFlat Trend 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 VanEck LongFlat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck LongFlat Trend has no effect on the direction of Thrivent High i.e., Thrivent High and VanEck LongFlat go up and down completely randomly.

Pair Corralation between Thrivent High and VanEck LongFlat

Assuming the 90 days horizon Thrivent High Yield is expected to under-perform the VanEck LongFlat. But the mutual fund apears to be less risky and, when comparing its historical volatility, Thrivent High Yield is 4.96 times less risky than VanEck LongFlat. The mutual fund trades about -0.12 of its potential returns per unit of risk. The VanEck LongFlat Trend is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5,364  in VanEck LongFlat Trend on August 5, 2025 and sell it today you would earn a total of  91.00  from holding VanEck LongFlat Trend or generate 1.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Thrivent High Yield  vs.  VanEck LongFlat Trend

Thrivent High Yield

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 9 (%) 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.

VanEck LongFlat Trend

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck LongFlat Trend are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, VanEck LongFlat may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Thrivent High and VanEck LongFlat

The main advantage of trading using opposite Thrivent High and VanEck LongFlat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, VanEck LongFlat 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 VanEck LongFlat will offset losses from the drop in VanEck LongFlat's long position.

The idea behind Thrivent High Yield and VanEck LongFlat Trend 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.