Correlation Between Siit High and Thornburg Limited
Can any of the company-specific risk be diversified away by investing in both Siit High 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 Siit High and Thornburg Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Thornburg Limited Term, you can compare the effects of market volatilities on Siit High 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 Siit High with a short position of Thornburg Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Thornburg Limited.
Diversification Opportunities for Siit High and Thornburg Limited
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Thornburg is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield 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 Siit High 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 Siit High Yield 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 Siit High i.e., Siit High and Thornburg Limited go up and down completely randomly.
Pair Corralation between Siit High and Thornburg Limited
Assuming the 90 days horizon Siit High Yield is expected to generate 1.19 times more return on investment than Thornburg Limited. However, Siit High is 1.19 times more volatile than Thornburg Limited Term. It trades about 0.21 of its potential returns per unit of risk. Thornburg Limited Term is currently generating about 0.14 per unit of risk. If you would invest 676.00 in Siit High Yield on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Siit High Yield or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Siit High Yield vs. Thornburg Limited Term
Performance |
| Timeline |
| Siit High Yield |
| Thornburg Limited Term |
Siit High and Thornburg Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Thornburg Limited
The main advantage of trading using opposite Siit High and Thornburg Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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.| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
| Thornburg Limited vs. Thornburg Value Fund | Thornburg Limited vs. Thornburg Value Fund | Thornburg Limited vs. Thornburg International Value | Thornburg Limited vs. Thornburg International Value |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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