Correlation Between Multimedia Portfolio and Thornburg International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Multimedia Portfolio and Thornburg International 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 Multimedia Portfolio and Thornburg International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimedia Portfolio Multimedia and Thornburg International Growth, you can compare the effects of market volatilities on Multimedia Portfolio and Thornburg International 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 Multimedia Portfolio with a short position of Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimedia Portfolio and Thornburg International.

Diversification Opportunities for Multimedia Portfolio and Thornburg International

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Multimedia and Thornburg is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Multimedia Portfolio Multimedi and Thornburg International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International and Multimedia Portfolio 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 Multimedia Portfolio Multimedia are associated (or correlated) with Thornburg International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of Multimedia Portfolio i.e., Multimedia Portfolio and Thornburg International go up and down completely randomly.

Pair Corralation between Multimedia Portfolio and Thornburg International

Assuming the 90 days horizon Multimedia Portfolio Multimedia is expected to generate 0.68 times more return on investment than Thornburg International. However, Multimedia Portfolio Multimedia is 1.48 times less risky than Thornburg International. It trades about 0.2 of its potential returns per unit of risk. Thornburg International Growth is currently generating about -0.24 per unit of risk. If you would invest  10,803  in Multimedia Portfolio Multimedia on September 13, 2024 and sell it today you would earn a total of  907.00  from holding Multimedia Portfolio Multimedia or generate 8.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Multimedia Portfolio Multimedi  vs.  Thornburg International Growth

 Performance 
       Timeline  
Multimedia Portfolio 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Multimedia Portfolio Multimedia are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multimedia Portfolio showed solid returns over the last few months and may actually be approaching a breakup point.
Thornburg International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Thornburg International Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Multimedia Portfolio and Thornburg International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Multimedia Portfolio and Thornburg International

The main advantage of trading using opposite Multimedia Portfolio and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimedia Portfolio position performs unexpectedly, Thornburg International 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 Thornburg International will offset losses from the drop in Thornburg International's long position.
The idea behind Multimedia Portfolio Multimedia and Thornburg International Growth 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories