Correlation Between Thrivent Moderately and Federated Bond

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

Diversification Opportunities for Thrivent Moderately and Federated Bond

0.0

Correlation Coefficient

Thrivent Moderately  Federated Bond

Pay attention - limited upside

The 3 months correlation between Thrivent and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Moderately Servative and Federated Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Bond 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 Federated Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Bond has no effect on the direction of Thrivent Moderately i.e., Thrivent Moderately and Federated Bond go up and down completely randomly.

Pair Corralation between Thrivent Moderately and Federated Bond

If you would invest (100.00) in Federated Bond Fund on May 15, 2025 and sell it today you would earn a total of  100.00  from holding Federated Bond Fund or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Thrivent Moderately Servative  vs.  Federated Bond Fund

Thrivent Moderately

Risk-Adjusted Performance

Solid

Over the last 90 days Thrivent Moderately Servative has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Thrivent Moderately is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Federated Bond

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Bond Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Federated Bond 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 Federated Bond

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

The idea behind Thrivent Moderately Servative and Federated Bond 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.