Correlation Between Thornburg Investment and Pear Tree
Can any of the company-specific risk be diversified away by investing in both Thornburg Investment and Pear Tree 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 Investment and Pear Tree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Investment Trust and Pear Tree Polaris, you can compare the effects of market volatilities on Thornburg Investment and Pear Tree 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 Investment with a short position of Pear Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Investment and Pear Tree.
Diversification Opportunities for Thornburg Investment and Pear Tree
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thornburg and Pear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Investment Trust and Pear Tree Polaris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pear Tree Polaris and Thornburg Investment 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 Investment Trust are associated (or correlated) with Pear Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pear Tree Polaris has no effect on the direction of Thornburg Investment i.e., Thornburg Investment and Pear Tree go up and down completely randomly.
Pair Corralation between Thornburg Investment and Pear Tree
If you would invest 1,307 in Pear Tree Polaris on September 3, 2024 and sell it today you would earn a total of 253.00 from holding Pear Tree Polaris or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Thornburg Investment Trust vs. Pear Tree Polaris
Performance |
| Timeline |
| Thornburg Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pear Tree Polaris |
Thornburg Investment and Pear Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Investment and Pear Tree
The main advantage of trading using opposite Thornburg Investment and Pear Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Investment position performs unexpectedly, Pear Tree 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 Pear Tree will offset losses from the drop in Pear Tree's long position.| Thornburg Investment vs. Small Pany Growth | Thornburg Investment vs. Artisan Small Cap | Thornburg Investment vs. Qs Moderate Growth | Thornburg Investment vs. Champlain Mid Cap |
| Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Artisan International Value | Pear Tree vs. Johcm International Select |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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