Correlation Between Thrivent Natural and Select Fund

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

By analyzing existing cross correlation between Thrivent Natural Resources and Select Fund C, you can compare the effects of market volatilities on Thrivent Natural and Select Fund 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 Natural with a short position of Select Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Natural and Select Fund.

Diversification Opportunities for Thrivent Natural and Select Fund

0.73

Correlation Coefficient

Thrivent Natural  Select Fund

Poor diversification

The 3 months correlation between Thrivent and Select is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Select Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Fund C and Thrivent Natural 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 Natural Resources are associated (or correlated) with Select Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Fund C has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Select Fund go up and down completely randomly.

Pair Corralation between Thrivent Natural and Select Fund

Assuming the 90 days horizon Thrivent Natural is expected to generate 47.07 times less return on investment than Select Fund. But when comparing it to its historical volatility, Thrivent Natural Resources is 7.32 times less risky than Select Fund. It trades about 0.03 of its potential returns per unit of risk. Select Fund C is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  7,332  in Select Fund C on July 3, 2025 and sell it today you would earn a total of  2,958  from holding Select Fund C or generate 40.34% return on investment over 90 days.

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

Thrivent Natural Resources  vs.  Select Fund C

Thrivent Natural Res

Risk-Adjusted Performance

Weakest

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

Select Fund C

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Select Fund C are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Select Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Thrivent Natural and Select Fund

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

The idea behind Thrivent Natural Resources and Select Fund C 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.