Correlation Between Thrivent Moderately and Astor Star

Can any of the company-specific risk be diversified away by investing in both Thrivent Moderately and Astor Star 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 Moderately and Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thrivent Moderately Servative and Astor Star Fund, you can compare the effects of market volatilities on Thrivent Moderately and Astor Star 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 Moderately with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Moderately and Astor Star.

Diversification Opportunities for Thrivent Moderately and Astor Star

0.67

Correlation Coefficient

Thrivent Moderately  Astor Star

Poor diversification

The 3 months correlation between Thrivent and Astor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Moderately Servative and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Thrivent Moderately 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 Moderately Servative are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Thrivent Moderately i.e., Thrivent Moderately and Astor Star go up and down completely randomly.

Pair Corralation between Thrivent Moderately and Astor Star

Assuming the 90 days horizon Thrivent Moderately Servative is expected to generate 0.83 times more return on investment than Astor Star. However, Thrivent Moderately Servative is 1.21 times less risky than Astor Star. It trades about 0.22 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.18 per unit of risk. If you would invest  1,295  in Thrivent Moderately Servative on May 10, 2025 and sell it today you would earn a total of  61.00  from holding Thrivent Moderately Servative or generate 4.71% return on investment over 90 days.

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

Thrivent Moderately Servative  vs.  Astor Star Fund

Thrivent Moderately

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Moderately Servative are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Thrivent Moderately is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Astor Star Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Star Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Astor Star is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thrivent Moderately and Astor Star

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

The idea behind Thrivent Moderately Servative and Astor Star Fund 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.