Correlation Between Thornburg Intermediate and Thornburg Value

Can any of the company-specific risk be diversified away by investing in both Thornburg Intermediate and Thornburg Value 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 Intermediate and Thornburg Value into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thornburg Intermediate Municipal and Thornburg Value Fund, you can compare the effects of market volatilities on Thornburg Intermediate and Thornburg Value 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 Intermediate with a short position of Thornburg Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Intermediate and Thornburg Value.

Diversification Opportunities for Thornburg Intermediate and Thornburg Value

0.0

Correlation Coefficient

Thornburg Intermediate  Thornburg Value

Pay attention - limited upside

The 3 months correlation between Thornburg and Thornburg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Intermediate Municip and Thornburg Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Value and Thornburg Intermediate 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 Intermediate Municipal are associated (or correlated) with Thornburg Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Value has no effect on the direction of Thornburg Intermediate i.e., Thornburg Intermediate and Thornburg Value go up and down completely randomly.

Pair Corralation between Thornburg Intermediate and Thornburg Value

If you would invest  1,322  in Thornburg Intermediate Municipal on September 4, 2024 and sell it today you would earn a total of  10.00  from holding Thornburg Intermediate Municipal or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Thornburg Intermediate Municip  vs.  Thornburg Value Fund

Thornburg Intermediate

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Thornburg Intermediate Municipal are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thornburg Intermediate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Thornburg Value

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Thornburg Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Thornburg Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Thornburg Intermediate and Thornburg Value

The main advantage of trading using opposite Thornburg Intermediate and Thornburg Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Intermediate position performs unexpectedly, Thornburg Value 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 Thornburg Value will offset losses from the drop in Thornburg Value's long position.

The idea behind Thornburg Intermediate Municipal and Thornburg Value Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.