Correlation Between Thornburg Core and Thornburg International
Can any of the company-specific risk be diversified away by investing in both Thornburg Core 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 Thornburg Core and Thornburg International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Core Plus and Thornburg International Value, you can compare the effects of market volatilities on Thornburg Core 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 Thornburg Core with a short position of Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Core and Thornburg International.
Diversification Opportunities for Thornburg Core and Thornburg International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thornburg and THORNBURG is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Core Plus and Thornburg International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International and Thornburg Core 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 Core Plus 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 Thornburg Core i.e., Thornburg Core and Thornburg International go up and down completely randomly.
Pair Corralation between Thornburg Core and Thornburg International
Assuming the 90 days horizon Thornburg Core is expected to generate 1.47 times less return on investment than Thornburg International. But when comparing it to its historical volatility, Thornburg Core Plus is 1.82 times less risky than Thornburg International. It trades about 0.07 of its potential returns per unit of risk. Thornburg International Value is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,165 in Thornburg International Value on August 26, 2024 and sell it today you would earn a total of 498.00 from holding Thornburg International Value or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 58.55% |
| Values | Daily Returns |
Thornburg Core Plus vs. Thornburg International Value
Performance |
| Timeline |
| Thornburg Core Plus |
| Thornburg International |
Thornburg Core and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Core and Thornburg International
The main advantage of trading using opposite Thornburg Core and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Core 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.| Thornburg Core vs. Vanguard Total Stock | Thornburg Core vs. Vanguard 500 Index | Thornburg Core vs. Vanguard Total Stock | Thornburg Core vs. Vanguard Total Stock |
| Thornburg International vs. Growth Fund Of | Thornburg International vs. Loomis Sayles Strategic | Thornburg International vs. Oppenheimer International Bond | Thornburg International vs. Thornburg E Growth |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |