Correlation Between Thompson Bond and Riverpark Floating
Can any of the company-specific risk be diversified away by investing in both Thompson Bond and Riverpark Floating 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 Thompson Bond and Riverpark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thompson Bond Fund and Riverpark Floating Rate, you can compare the effects of market volatilities on Thompson Bond and Riverpark Floating 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 Thompson Bond with a short position of Riverpark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thompson Bond and Riverpark Floating.
Diversification Opportunities for Thompson Bond and Riverpark Floating
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thompson and Riverpark is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Thompson Bond Fund and Riverpark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riverpark Floating Rate and Thompson Bond 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 Thompson Bond Fund are associated (or correlated) with Riverpark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riverpark Floating Rate has no effect on the direction of Thompson Bond i.e., Thompson Bond and Riverpark Floating go up and down completely randomly.
Pair Corralation between Thompson Bond and Riverpark Floating
Assuming the 90 days horizon Thompson Bond Fund is expected to generate 1.47 times more return on investment than Riverpark Floating. However, Thompson Bond is 1.47 times more volatile than Riverpark Floating Rate. It trades about 0.48 of its potential returns per unit of risk. Riverpark Floating Rate is currently generating about 0.55 per unit of risk. If you would invest 1,037 in Thompson Bond Fund on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Thompson Bond Fund or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thompson Bond Fund vs. Riverpark Floating Rate
Performance |
| Timeline |
| Thompson Bond |
| Riverpark Floating Rate |
Thompson Bond and Riverpark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thompson Bond and Riverpark Floating
The main advantage of trading using opposite Thompson Bond and Riverpark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thompson Bond position performs unexpectedly, Riverpark Floating 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 Riverpark Floating will offset losses from the drop in Riverpark Floating's long position.| Thompson Bond vs. Tcw Total Return | Thompson Bond vs. Amg Yacktman Focused | Thompson Bond vs. Fidelity Advisor Floating | Thompson Bond vs. Doubleline Total Return |
| Riverpark Floating vs. Fidelity Advisor Energy | Riverpark Floating vs. Firsthand Alternative Energy | Riverpark Floating vs. Goldman Sachs Mlp | Riverpark Floating vs. Icon Natural Resources |
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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