Thornburg Developing Correlations

THDCX Fund  USD 19.80  0.10  0.50%   
The current 90-days correlation between Thornburg Developing and Mesirow Financial Small is 0.4 (i.e., Very weak diversification). The correlation of Thornburg Developing is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Thornburg Developing Correlation With Market

Average diversification

The correlation between Thornburg Developing World and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Developing World and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Thornburg Developing World. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with Thornburg Mutual Fund

  1.0THDAX Thornburg DevelopingPairCorr
  1.0THDIX Thornburg DevelopingPairCorr
  0.93THDRX Thornburg DevelopingPairCorr
  0.76THGIX Thornburg InternationalPairCorr
  0.61THMQX Thornburg IntermediatePairCorr
  0.61THNDX Thornburg New MexicoPairCorr
  0.62THMCX Thornburg IntermediatePairCorr
  0.61THMIX Thornburg IntermediatePairCorr
  0.63THNYX Thornburg New YorkPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Thornburg Mutual Fund performing well and Thornburg Developing Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Thornburg Developing's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.