Correlation Between Thornburg Intermediate and Franklin Government
Can any of the company-specific risk be diversified away by investing in both Thornburg Intermediate and Franklin Government 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 Intermediate and Franklin Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Intermediate Municipal and Franklin Government Money, you can compare the effects of market volatilities on Thornburg Intermediate and Franklin Government 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 Intermediate with a short position of Franklin Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Intermediate and Franklin Government.
Diversification Opportunities for Thornburg Intermediate and Franklin Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thornburg and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Intermediate Municip and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Thornburg Intermediate 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 Intermediate Municipal are associated (or correlated) with Franklin Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Thornburg Intermediate i.e., Thornburg Intermediate and Franklin Government go up and down completely randomly.
Pair Corralation between Thornburg Intermediate and Franklin Government
If you would invest 1,305 in Thornburg Intermediate Municipal on October 24, 2024 and sell it today you would earn a total of 4.00 from holding Thornburg Intermediate Municipal or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Thornburg Intermediate Municip vs. Franklin Government Money
Performance |
| Timeline |
| Thornburg Intermediate |
| Franklin Government Money |
Thornburg Intermediate and Franklin Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Intermediate and Franklin Government
The main advantage of trading using opposite Thornburg Intermediate and Franklin Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Intermediate position performs unexpectedly, Franklin Government 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 Franklin Government will offset losses from the drop in Franklin Government's long position.| Thornburg Intermediate vs. Franklin Government Money | Thornburg Intermediate vs. Aig Government Money | Thornburg Intermediate vs. Rbc Funds Trust | Thornburg Intermediate vs. Schwab Government Money |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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