Correlation Between Glg Intl and Thornburg Limited
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Thornburg Limited 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 Glg Intl and Thornburg Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Thornburg Limited Term, you can compare the effects of market volatilities on Glg Intl and Thornburg Limited 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 Glg Intl with a short position of Thornburg Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Thornburg Limited.
Diversification Opportunities for Glg Intl and Thornburg Limited
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glg and Thornburg is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Thornburg Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Limited Term and Glg Intl 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 Glg Intl Small are associated (or correlated) with Thornburg Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Limited Term has no effect on the direction of Glg Intl i.e., Glg Intl and Thornburg Limited go up and down completely randomly.
Pair Corralation between Glg Intl and Thornburg Limited
Assuming the 90 days horizon Glg Intl Small is expected to generate 5.16 times more return on investment than Thornburg Limited. However, Glg Intl is 5.16 times more volatile than Thornburg Limited Term. It trades about 0.36 of its potential returns per unit of risk. Thornburg Limited Term is currently generating about 0.07 per unit of risk. If you would invest 8,346 in Glg Intl Small on November 3, 2024 and sell it today you would earn a total of 565.00 from holding Glg Intl Small or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Thornburg Limited Term
Performance |
| Timeline |
| Glg Intl Small |
| Thornburg Limited Term |
Glg Intl and Thornburg Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Thornburg Limited
The main advantage of trading using opposite Glg Intl and Thornburg Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Thornburg Limited 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 Limited will offset losses from the drop in Thornburg Limited's long position.| Glg Intl vs. Hunter Small Cap | Glg Intl vs. Ab Small Cap | Glg Intl vs. Df Dent Small | Glg Intl vs. Needham Small Cap |
| Thornburg Limited vs. International Investors Gold | Thornburg Limited vs. Precious Metals And | Thornburg Limited vs. Great West Goldman Sachs | Thornburg Limited vs. Franklin Gold Precious |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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