Correlation Between Thrivent Mid and Invesco Small

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

By analyzing existing cross correlation between Thrivent Mid Cap and Invesco Small Cap, you can compare the effects of market volatilities on Thrivent Mid and Invesco Small 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 Mid with a short position of Invesco Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Mid and Invesco Small.

Diversification Opportunities for Thrivent Mid and Invesco Small

0.94

Correlation Coefficient

Thrivent Mid  Invesco Small

Almost no diversification

The 3 months correlation between Thrivent and Invesco is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Mid Cap and Invesco Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Small Cap and Thrivent Mid 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 Mid Cap are associated (or correlated) with Invesco Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Small Cap has no effect on the direction of Thrivent Mid i.e., Thrivent Mid and Invesco Small go up and down completely randomly.

Pair Corralation between Thrivent Mid and Invesco Small

Assuming the 90 days horizon Thrivent Mid is expected to generate 2.03 times less return on investment than Invesco Small. But when comparing it to its historical volatility, Thrivent Mid Cap is 1.21 times less risky than Invesco Small. It trades about 0.13 of its potential returns per unit of risk. Invesco Small Cap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  2,141  in Invesco Small Cap on May 2, 2025 and sell it today you would earn a total of  304.00  from holding Invesco Small Cap or generate 14.2% return on investment over 90 days.

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

Thrivent Mid Cap  vs.  Invesco Small Cap

Thrivent Mid Cap

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Mid Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Thrivent Mid may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Invesco Small Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Small Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Invesco Small showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thrivent Mid and Invesco Small

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

The idea behind Thrivent Mid Cap and Invesco Small Cap 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.