Correlation Between Turner Emerging and Thrivent Moderate

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

By analyzing existing cross correlation between Turner Emerging Growth and Thrivent Moderate Allocation, you can compare the effects of market volatilities on Turner Emerging and Thrivent Moderate 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 Turner Emerging with a short position of Thrivent Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turner Emerging and Thrivent Moderate.

Diversification Opportunities for Turner Emerging and Thrivent Moderate

0.63

Correlation Coefficient

Turner Emerging  Thrivent Moderate

Poor diversification

The 3 months correlation between Turner and Thrivent is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Turner Emerging Growth and Thrivent Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderate and Turner Emerging 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 Turner Emerging Growth are associated (or correlated) with Thrivent Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderate has no effect on the direction of Turner Emerging i.e., Turner Emerging and Thrivent Moderate go up and down completely randomly.

Pair Corralation between Turner Emerging and Thrivent Moderate

Assuming the 90 days horizon Turner Emerging Growth is expected to generate 1.79 times more return on investment than Thrivent Moderate. However, Turner Emerging is 1.79 times more volatile than Thrivent Moderate Allocation. It trades about 0.17 of its potential returns per unit of risk. Thrivent Moderate Allocation is currently generating about 0.25 per unit of risk. If you would invest  1,394  in Turner Emerging Growth on May 6, 2025 and sell it today you would earn a total of  132.00  from holding Turner Emerging Growth or generate 9.47% return on investment over 90 days.

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

Turner Emerging Growth  vs.  Thrivent Moderate Allocation

Turner Emerging Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turner Emerging Growth are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Turner Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Thrivent Moderate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Moderate Allocation are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Thrivent Moderate may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Turner Emerging and Thrivent Moderate

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

The idea behind Turner Emerging Growth and Thrivent Moderate Allocation 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 Anywhere module to track or share privately all of your investments from the convenience of any device.