Correlation Between Certara and Thrivent High

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

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

Diversification Opportunities for Certara and Thrivent High

-0.13

Correlation Coefficient

Certara  Thrivent High

Good diversification

The 3 months correlation between Certara and Thrivent is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Certara and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Certara 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 Certara are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Certara i.e., Certara and Thrivent High go up and down completely randomly.

Pair Corralation between Certara and Thrivent High

Given the investment horizon of 90 days Certara is expected to generate 12.36 times more return on investment than Thrivent High. However, Certara is 12.36 times more volatile than Thrivent High Yield. It trades about 0.01 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.08 per unit of risk. If you would invest  1,078  in Certara on March 24, 2025 and sell it today you would lose (24.00) from holding Certara or give up 2.23% of portfolio value over 90 days.

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

Certara  vs.  Thrivent High Yield

Certara

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Certara are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Certara is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Thrivent High Yield

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Certara and Thrivent High

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

The idea behind Certara and Thrivent High Yield 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.