Correlation Between Thornburg International and Siit High
Can any of the company-specific risk be diversified away by investing in both Thornburg International and Siit High 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 Siit High 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 Siit High Yield, you can compare the effects of market volatilities on Thornburg International and Siit High 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Siit High.
Diversification Opportunities for Thornburg International and Siit High
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thornburg and Siit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Thornburg International i.e., Thornburg International and Siit High go up and down completely randomly.
Pair Corralation between Thornburg International and Siit High
Assuming the 90 days horizon Thornburg International is expected to generate 1.12 times less return on investment than Siit High. In addition to that, Thornburg International is 3.43 times more volatile than Siit High Yield. It trades about 0.04 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.17 per unit of volatility. If you would invest 651.00 in Siit High Yield on November 3, 2024 and sell it today you would earn a total of 67.00 from holding Siit High Yield or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Thornburg International Value vs. Siit High Yield
Performance |
| Timeline |
| Thornburg International |
| Siit High Yield |
Thornburg International and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Siit High
The main advantage of trading using opposite Thornburg International and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Thornburg International vs. Victory Rs Partners | Thornburg International vs. Vanguard Small Cap Value | Thornburg International vs. Lsv Small Cap | Thornburg International vs. Amg River Road |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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