Correlation Between Thrivent Large and JP Morgan

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Can any of the company-specific risk be diversified away by investing in both Thrivent Large and JP Morgan 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 Large and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent Large Cap and JP Morgan Chase, you can compare the effects of market volatilities on Thrivent Large and JP Morgan 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 Large with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent Large and JP Morgan.

Diversification Opportunities for Thrivent Large and JP Morgan

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between Thrivent and JP Morgan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent Large Cap and JP Morgan Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Chase and Thrivent Large 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 Large Cap are associated (or correlated) with JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Chase has no effect on the direction of Thrivent Large i.e., Thrivent Large and JP Morgan go up and down completely randomly.

Pair Corralation between Thrivent Large and JP Morgan

Assuming the 90 days horizon Thrivent Large Cap is expected to under-perform the JP Morgan. In addition to that, Thrivent Large is 1.05 times more volatile than JP Morgan Chase. It trades about -0.01 of its total potential returns per unit of risk. JP Morgan Chase is currently generating about 0.03 per unit of volatility. If you would invest  11,537  in JP Morgan Chase on August 30, 2022 and sell it today you would earn a total of  2,137  from holding JP Morgan Chase or generate 18.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Thrivent Large Cap  vs.  JP Morgan Chase

 Performance (%) 
       Timeline  
Thrivent Large Cap 
Thrivent Performance
0 of 100
Over the last 90 days Thrivent Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Thrivent Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Thrivent Price Channel

JP Morgan Chase 
JP Morgan Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, JP Morgan revealed solid returns over the last few months and may actually be approaching a breakup point.

JP Morgan Price Channel

Thrivent Large and JP Morgan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thrivent Large and JP Morgan

The main advantage of trading using opposite Thrivent Large and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent Large position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan's long position.
Thrivent Large vs. The Growth Fund
The idea behind Thrivent Large Cap and JP Morgan Chase 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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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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