Correlation Between Thornburg Global and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Thornburg Global and Dow Jones 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 Global and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Global Opportunities and Dow Jones Industrial, you can compare the effects of market volatilities on Thornburg Global and Dow Jones 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 Global with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Global and Dow Jones.
Diversification Opportunities for Thornburg Global and Dow Jones
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thornburg and Dow is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Global Opportunities and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Thornburg Global 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 Global Opportunities are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Thornburg Global i.e., Thornburg Global and Dow Jones go up and down completely randomly.
Pair Corralation between Thornburg Global and Dow Jones
Assuming the 90 days horizon Thornburg Global is expected to generate 7.33 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Thornburg Global Opportunities is 1.08 times less risky than Dow Jones. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,034,541 in Dow Jones Industrial on September 6, 2024 and sell it today you would earn a total of 466,863 from holding Dow Jones Industrial or generate 11.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Thornburg Global Opportunities vs. Dow Jones Industrial
Performance |
Timeline |
Thornburg Global and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Thornburg Global Opportunities
Pair trading matchups for Thornburg Global
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Thornburg Global and Dow Jones
The main advantage of trading using opposite Thornburg Global and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Global position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Thornburg Global vs. Tiaa Cref Smallmid Cap Equity | Thornburg Global vs. The Gabelli Small | Thornburg Global vs. T Rowe Price | Thornburg Global vs. Small Cap Stock |
Dow Jones vs. WiMi Hologram Cloud | Dow Jones vs. Aehr Test Systems | Dow Jones vs. CarsalesCom Ltd ADR | Dow Jones vs. WPP PLC 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |