Correlation Between Thornburg Value and Rbc Bluebay
Can any of the company-specific risk be diversified away by investing in both Thornburg Value and Rbc Bluebay 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 Value and Rbc Bluebay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Value Fund and Rbc Bluebay Global, you can compare the effects of market volatilities on Thornburg Value and Rbc Bluebay 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 Value with a short position of Rbc Bluebay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Value and Rbc Bluebay.
Diversification Opportunities for Thornburg Value and Rbc Bluebay
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thornburg and Rbc is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Value Fund and Rbc Bluebay Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Bluebay Global and Thornburg Value 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 Value Fund are associated (or correlated) with Rbc Bluebay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Bluebay Global has no effect on the direction of Thornburg Value i.e., Thornburg Value and Rbc Bluebay go up and down completely randomly.
Pair Corralation between Thornburg Value and Rbc Bluebay
Assuming the 90 days horizon Thornburg Value Fund is expected to generate 4.13 times more return on investment than Rbc Bluebay. However, Thornburg Value is 4.13 times more volatile than Rbc Bluebay Global. It trades about 0.07 of its potential returns per unit of risk. Rbc Bluebay Global is currently generating about 0.14 per unit of risk. If you would invest 6,238 in Thornburg Value Fund on August 29, 2024 and sell it today you would earn a total of 2,687 from holding Thornburg Value Fund or generate 43.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Value Fund vs. Rbc Bluebay Global
Performance |
| Timeline |
| Thornburg Value |
| Rbc Bluebay Global |
Thornburg Value and Rbc Bluebay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Value and Rbc Bluebay
The main advantage of trading using opposite Thornburg Value and Rbc Bluebay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Value position performs unexpectedly, Rbc Bluebay 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 Rbc Bluebay will offset losses from the drop in Rbc Bluebay's long position.| Thornburg Value vs. Rbc Bluebay Global | Thornburg Value vs. Dws Government Money | Thornburg Value vs. Touchstone Ohio Tax | Thornburg Value vs. Multisector Bond Sma |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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