Correlation Between Thornburg Value and Deutsche Real
Can any of the company-specific risk be diversified away by investing in both Thornburg Value and Deutsche Real 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 Deutsche Real 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 Deutsche Real Estate, you can compare the effects of market volatilities on Thornburg Value and Deutsche Real 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 Deutsche Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Value and Deutsche Real.
Diversification Opportunities for Thornburg Value and Deutsche Real
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thornburg and Deutsche is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Value Fund and Deutsche Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Real Estate 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 Deutsche Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Real Estate has no effect on the direction of Thornburg Value i.e., Thornburg Value and Deutsche Real go up and down completely randomly.
Pair Corralation between Thornburg Value and Deutsche Real
Assuming the 90 days horizon Thornburg Value Fund is expected to generate 1.37 times more return on investment than Deutsche Real. However, Thornburg Value is 1.37 times more volatile than Deutsche Real Estate. It trades about 0.27 of its potential returns per unit of risk. Deutsche Real Estate is currently generating about 0.13 per unit of risk. If you would invest 8,212 in Thornburg Value Fund on August 30, 2024 and sell it today you would earn a total of 713.00 from holding Thornburg Value Fund or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Value Fund vs. Deutsche Real Estate
Performance |
| Timeline |
| Thornburg Value |
| Deutsche Real Estate |
Thornburg Value and Deutsche Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Value and Deutsche Real
The main advantage of trading using opposite Thornburg Value and Deutsche Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Value position performs unexpectedly, Deutsche Real 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 Deutsche Real will offset losses from the drop in Deutsche Real'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 |
| Deutsche Real vs. Franklin Natural Resources | Deutsche Real vs. HUMANA INC | Deutsche Real vs. Aquagold International | Deutsche Real vs. Barloworld Ltd ADR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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