Correlation Between Thrivent Natural and Carillon Scout

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

Diversification Opportunities for Thrivent Natural and Carillon Scout

0.87

Correlation Coefficient

Thrivent Natural  Carillon Scout

Very poor diversification

The 3 months correlation between Thrivent and Carillon is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Natural Resources and Carillon Scout Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carillon Scout Mid 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 Carillon Scout. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carillon Scout Mid has no effect on the direction of Thrivent Natural i.e., Thrivent Natural and Carillon Scout go up and down completely randomly.

Pair Corralation between Thrivent Natural and Carillon Scout

Assuming the 90 days horizon Thrivent Natural is expected to generate 2.16 times less return on investment than Carillon Scout. But when comparing it to its historical volatility, Thrivent Natural Resources is 8.91 times less risky than Carillon Scout. It trades about 0.29 of its potential returns per unit of risk. Carillon Scout Mid is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,396  in Carillon Scout Mid on May 15, 2025 and sell it today you would earn a total of  71.00  from holding Carillon Scout Mid or generate 2.96% return on investment over 90 days.

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

Thrivent Natural Resources  vs.  Carillon Scout Mid

Thrivent Natural Res

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Natural Resources are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. 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.

Carillon Scout Mid

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Carillon Scout Mid are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Carillon Scout 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 Natural and Carillon Scout

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

The idea behind Thrivent Natural Resources and Carillon Scout Mid 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.

Check out your portfolio center.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.