Correlation Between Thornburg Limited and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Thornburg Limited and Ep Emerging 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 Thornburg Limited and Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Limited Term and Ep Emerging Markets, you can compare the effects of market volatilities on Thornburg Limited and Ep Emerging 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 Thornburg Limited with a short position of Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Limited and Ep Emerging.
Diversification Opportunities for Thornburg Limited and Ep Emerging
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thornburg and EPEIX is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Limited Term and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets and Thornburg Limited 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 Thornburg Limited Term are associated (or correlated) with Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Thornburg Limited i.e., Thornburg Limited and Ep Emerging go up and down completely randomly.
Pair Corralation between Thornburg Limited and Ep Emerging
Assuming the 90 days horizon Thornburg Limited Term is expected to generate 0.24 times more return on investment than Ep Emerging. However, Thornburg Limited Term is 4.14 times less risky than Ep Emerging. It trades about 0.13 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 1,160 in Thornburg Limited Term on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Thornburg Limited Term or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Limited Term vs. Ep Emerging Markets
Performance |
| Timeline |
| Thornburg Limited Term |
| Ep Emerging Markets |
Thornburg Limited and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Limited and Ep Emerging
The main advantage of trading using opposite Thornburg Limited and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Limited position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Thornburg Limited vs. Thornburg Value Fund | Thornburg Limited vs. Thornburg Value Fund | Thornburg Limited vs. Thornburg International Value | Thornburg Limited vs. Thornburg International Value |
| Ep Emerging vs. Growth Opportunities Fund | Ep Emerging vs. Chase Growth Fund | Ep Emerging vs. Legg Mason Partners | Ep Emerging vs. Vanguard Growth And |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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