Correlation Between Thornburg International and Total Return
Can any of the company-specific risk be diversified away by investing in both Thornburg International and Total Return 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 International and Total Return into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg International Value and Total Return Fund, you can compare the effects of market volatilities on Thornburg International and Total Return 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 International with a short position of Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Total Return.
Diversification Opportunities for Thornburg International and Total Return
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thornburg and Total is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return and Thornburg International 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 International Value are associated (or correlated) with Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Thornburg International i.e., Thornburg International and Total Return go up and down completely randomly.
Pair Corralation between Thornburg International and Total Return
Assuming the 90 days horizon Thornburg International Value is expected to generate 2.27 times more return on investment than Total Return. However, Thornburg International is 2.27 times more volatile than Total Return Fund. It trades about 0.04 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.03 per unit of risk. If you would invest 2,050 in Thornburg International Value on September 19, 2024 and sell it today you would earn a total of 140.00 from holding Thornburg International Value or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg International Value vs. Total Return Fund
Performance |
| Timeline |
| Thornburg International |
| Total Return |
Thornburg International and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Total Return
The main advantage of trading using opposite Thornburg International and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Thornburg International vs. Total Return Fund | Thornburg International vs. Blackrock Gbl Alloc | Thornburg International vs. Blackrock Eq Dividend | Thornburg International vs. Davis New York |
| Total Return vs. Eagle Mlp Strategy | Total Return vs. Vy Jpmorgan Emerging | Total Return vs. Angel Oak Multi Strategy | Total Return vs. Ashmore Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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