Correlation Between Thrivent Moderately and Pace Large

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

Diversification Opportunities for Thrivent Moderately and Pace Large

0.96

Correlation Coefficient

Thrivent Moderately  Pace Large

Almost no diversification

The 3 months correlation between Thrivent and Pace is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Moderately Servative and Pace Large Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Large Growth 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 Pace Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Large Growth has no effect on the direction of Thrivent Moderately i.e., Thrivent Moderately and Pace Large go up and down completely randomly.

Pair Corralation between Thrivent Moderately and Pace Large

Assuming the 90 days horizon Thrivent Moderately is expected to generate 1.72 times less return on investment than Pace Large. But when comparing it to its historical volatility, Thrivent Moderately Servative is 2.19 times less risky than Pace Large. It trades about 0.23 of its potential returns per unit of risk. Pace Large Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,516  in Pace Large Growth on May 14, 2025 and sell it today you would earn a total of  127.00  from holding Pace Large Growth or generate 8.38% return on investment over 90 days.

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

Thrivent Moderately Servative  vs.  Pace Large Growth

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 18 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pace Large Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pace Large Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pace Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Thrivent Moderately and Pace Large

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

The idea behind Thrivent Moderately Servative and Pace Large Growth 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.