Correlation Between Thornburg International and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Thornburg International and SCOR PK 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 International and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg International Value and SCOR PK, you can compare the effects of market volatilities on Thornburg International and SCOR PK 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 International with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and SCOR PK.
Diversification Opportunities for Thornburg International and SCOR PK
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thornburg and SCOR is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and Thornburg International 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 International Value are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Thornburg International i.e., Thornburg International and SCOR PK go up and down completely randomly.
Pair Corralation between Thornburg International and SCOR PK
Assuming the 90 days horizon Thornburg International is expected to generate 47.86 times less return on investment than SCOR PK. But when comparing it to its historical volatility, Thornburg International Value is 3.73 times less risky than SCOR PK. It trades about 0.0 of its potential returns per unit of risk. SCOR PK is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 265.00 in SCOR PK on September 13, 2024 and sell it today you would lose (9.00) from holding SCOR PK or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg International Value vs. SCOR PK
Performance |
| Timeline |
| Thornburg International |
| SCOR PK |
Thornburg International and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and SCOR PK
The main advantage of trading using opposite Thornburg International and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Thornburg International vs. Thornburg E Growth | Thornburg International vs. Mainstay Large Cap | Thornburg International vs. Allianzgi Nfj Small Cap | Thornburg International vs. Columbia Mid Cap |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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