Correlation Between Thrivent Moderately and Turner Emerging

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

Diversification Opportunities for Thrivent Moderately and Turner Emerging

0.92

Correlation Coefficient

Thrivent Moderately  Turner Emerging

Almost no diversification

The 3 months correlation between Thrivent and Turner is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Moderately Servative and Turner Emerging Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turner Emerging 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 Turner Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turner Emerging Growth has no effect on the direction of Thrivent Moderately i.e., Thrivent Moderately and Turner Emerging go up and down completely randomly.

Pair Corralation between Thrivent Moderately and Turner Emerging

Assuming the 90 days horizon Thrivent Moderately is expected to generate 1.17 times less return on investment than Turner Emerging. But when comparing it to its historical volatility, Thrivent Moderately Servative is 2.31 times less risky than Turner Emerging. It trades about 0.24 of its potential returns per unit of risk. Turner Emerging Growth is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,461  in Turner Emerging Growth on May 11, 2025 and sell it today you would earn a total of  84.00  from holding Turner Emerging Growth or generate 5.75% 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.  Turner Emerging 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.

Turner Emerging Growth

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Turner Emerging Growth are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Turner Emerging 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 Turner Emerging

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

The idea behind Thrivent Moderately Servative and Turner Emerging 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.