Correlation Between Renaissance Europe and Templeton Global
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By analyzing existing cross correlation between Renaissance Europe C and Templeton Global Bond, you can compare the effects of market volatilities on Renaissance Europe and Templeton Global 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 Renaissance Europe with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renaissance Europe and Templeton Global.
Diversification Opportunities for Renaissance Europe and Templeton Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Renaissance and Templeton is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Renaissance Europe C and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond and Renaissance Europe 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 Renaissance Europe C are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Renaissance Europe i.e., Renaissance Europe and Templeton Global go up and down completely randomly.
Pair Corralation between Renaissance Europe and Templeton Global
Assuming the 90 days trading horizon Renaissance Europe C is expected to generate 1.64 times more return on investment than Templeton Global. However, Renaissance Europe is 1.64 times more volatile than Templeton Global Bond. It trades about 0.06 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.01 per unit of risk. If you would invest 21,258 in Renaissance Europe C on September 13, 2024 and sell it today you would earn a total of 5,881 from holding Renaissance Europe C or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 41.35% |
| Values | Daily Returns |
Renaissance Europe C vs. Templeton Global Bond
Performance |
| Timeline |
| Renaissance Europe |
| Templeton Global Bond |
Renaissance Europe and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renaissance Europe and Templeton Global
The main advantage of trading using opposite Renaissance Europe and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renaissance Europe position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Renaissance Europe vs. Impact ISR Performance | Renaissance Europe vs. JPMIF Bond Fund | Renaissance Europe vs. CM AM Monplus NE | Renaissance Europe vs. Esfera Robotics R |
| Templeton Global vs. Groupama Entreprises N | Templeton Global vs. Renaissance Europe C | Templeton Global vs. Superior Plus Corp | Templeton Global vs. Origin Agritech |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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