Correlation Between Thornburg Investment and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Thornburg Investment and Templeton Global 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 Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Investment Income and Templeton Global Bond, you can compare the effects of market volatilities on Thornburg Investment and Templeton Global 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Investment and Templeton Global.
Diversification Opportunities for Thornburg Investment and Templeton Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thornburg and Templeton is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Investment Income and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond 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 Income are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Thornburg Investment i.e., Thornburg Investment and Templeton Global go up and down completely randomly.
Pair Corralation between Thornburg Investment and Templeton Global
Assuming the 90 days horizon Thornburg Investment Income is expected to generate 1.22 times more return on investment than Templeton Global. However, Thornburg Investment is 1.22 times more volatile than Templeton Global Bond. It trades about 0.5 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.03 per unit of risk. If you would invest 2,482 in Thornburg Investment Income on October 20, 2024 and sell it today you would earn a total of 142.00 from holding Thornburg Investment Income or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Investment Income vs. Templeton Global Bond
Performance |
| Timeline |
| Thornburg Investment |
| Templeton Global Bond |
Thornburg Investment and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Investment and Templeton Global
The main advantage of trading using opposite Thornburg Investment and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Investment position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Thornburg Investment vs. Franklin Income Fund | Thornburg Investment vs. Jpmorgan Income Builder | Thornburg Investment vs. First Eagle Global | Thornburg Investment vs. Ivy Asset Strategy |
| Templeton Global vs. Maryland Tax Free Bond | Templeton Global vs. Georgia Tax Free Bond | Templeton Global vs. Rbc Ultra Short Fixed | Templeton Global vs. Gmo High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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