Correlation Between James Balanced: and Thornburg Global
Can any of the company-specific risk be diversified away by investing in both James Balanced: and Thornburg Global 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 James Balanced: and Thornburg Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Thornburg Global Opportunities, you can compare the effects of market volatilities on James Balanced: and Thornburg Global 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 James Balanced: with a short position of Thornburg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Thornburg Global.
Diversification Opportunities for James Balanced: and Thornburg Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between James and Thornburg is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Thornburg Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Global Opp and James Balanced: 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 James Balanced Golden are associated (or correlated) with Thornburg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Global Opp has no effect on the direction of James Balanced: i.e., James Balanced: and Thornburg Global go up and down completely randomly.
Pair Corralation between James Balanced: and Thornburg Global
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.59 times more return on investment than Thornburg Global. However, James Balanced Golden is 1.7 times less risky than Thornburg Global. It trades about 0.11 of its potential returns per unit of risk. Thornburg Global Opportunities is currently generating about -0.25 per unit of risk. If you would invest 2,292 in James Balanced Golden on August 29, 2024 and sell it today you would earn a total of 25.00 from holding James Balanced Golden or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Thornburg Global Opportunities
Performance |
| Timeline |
| James Balanced Golden |
| Thornburg Global Opp |
James Balanced: and Thornburg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Thornburg Global
The main advantage of trading using opposite James Balanced: and Thornburg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, Thornburg Global 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 Global will offset losses from the drop in Thornburg Global's long position.| James Balanced: vs. Vanguard Wellesley Income | James Balanced: vs. HUMANA INC | James Balanced: vs. Aquagold International | James Balanced: vs. Barloworld Ltd ADR |
| Thornburg Global vs. Gabelli Gold Fund | Thornburg Global vs. Goldman Sachs Centrated | Thornburg Global vs. The Gold Bullion | Thornburg Global vs. James Balanced Golden |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |