Correlation Between Thornburg Investment and Touchstone International
Can any of the company-specific risk be diversified away by investing in both Thornburg Investment and Touchstone 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 Investment and Touchstone International 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 Touchstone International Equity, you can compare the effects of market volatilities on Thornburg Investment and Touchstone 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 Investment with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Investment and Touchstone International.
Diversification Opportunities for Thornburg Investment and Touchstone International
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thornburg and Touchstone is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Investment Trust and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Thornburg Investment i.e., Thornburg Investment and Touchstone International go up and down completely randomly.
Pair Corralation between Thornburg Investment and Touchstone International
Assuming the 90 days horizon Thornburg Investment Trust is expected to under-perform the Touchstone International. In addition to that, Thornburg Investment is 1.04 times more volatile than Touchstone International Equity. It trades about 0.0 of its total potential returns per unit of risk. Touchstone International Equity is currently generating about 0.04 per unit of volatility. If you would invest 1,468 in Touchstone International Equity on August 26, 2024 and sell it today you would earn a total of 103.00 from holding Touchstone International Equity or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 49.8% |
| Values | Daily Returns |
Thornburg Investment Trust vs. Touchstone International Equit
Performance |
| Timeline |
| Thornburg Investment |
| Touchstone International |
Thornburg Investment and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Investment and Touchstone International
The main advantage of trading using opposite Thornburg Investment and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Investment position performs unexpectedly, Touchstone 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Thornburg Investment vs. Gmo Global Equity | Thornburg Investment vs. The Hartford Equity | Thornburg Investment vs. Artisan Select Equity | Thornburg Investment vs. Gmo Equity Allocation |
| Touchstone International vs. Touchstone Small Cap | Touchstone International vs. Touchstone Sands Capital | Touchstone International vs. Mid Cap Growth | Touchstone International vs. Mid Cap 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 CEOs Directory module to screen CEOs from public companies around the world.
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