Correlation Between Intermediate-term and Thrivent Moderately

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

By analyzing existing cross correlation between Intermediate Term Bond Fund and Thrivent Moderately Servative, you can compare the effects of market volatilities on Intermediate-term and Thrivent Moderately 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 Intermediate-term with a short position of Thrivent Moderately. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate-term and Thrivent Moderately.

Diversification Opportunities for Intermediate-term and Thrivent Moderately

0.67

Correlation Coefficient

Intermediate-term  Thrivent Moderately

Poor diversification

The 3 months correlation between Intermediate-term and Thrivent is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Term Bond Fund and Thrivent Moderately Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderately and Intermediate-term 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 Intermediate Term Bond Fund are associated (or correlated) with Thrivent Moderately. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderately has no effect on the direction of Intermediate-term i.e., Intermediate-term and Thrivent Moderately go up and down completely randomly.

Pair Corralation between Intermediate-term and Thrivent Moderately

Assuming the 90 days horizon Intermediate-term is expected to generate 1.75 times less return on investment than Thrivent Moderately. But when comparing it to its historical volatility, Intermediate Term Bond Fund is 1.13 times less risky than Thrivent Moderately. It trades about 0.14 of its potential returns per unit of risk. Thrivent Moderately Servative is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,308  in Thrivent Moderately Servative on May 20, 2025 and sell it today you would earn a total of  62.00  from holding Thrivent Moderately Servative or generate 4.74% return on investment over 90 days.

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

Intermediate Term Bond Fund  vs.  Thrivent Moderately Servative

Intermediate Term Bond

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intermediate Term Bond Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intermediate-term is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 17 (%) 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.

Pair Trading with Intermediate-term and Thrivent Moderately

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

The idea behind Intermediate Term Bond Fund and Thrivent Moderately Servative 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.