Correlation Between Renaissance Europe and Templeton Emerging
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By analyzing existing cross correlation between Renaissance Europe C and Templeton Emerging Mkt, you can compare the effects of market volatilities on Renaissance Europe and Templeton Emerging 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 Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renaissance Europe and Templeton Emerging.
Diversification Opportunities for Renaissance Europe and Templeton Emerging
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Renaissance and Templeton is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Renaissance Europe C and Templeton Emerging Mkt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Emerging Mkt 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 Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Emerging Mkt has no effect on the direction of Renaissance Europe i.e., Renaissance Europe and Templeton Emerging go up and down completely randomly.
Pair Corralation between Renaissance Europe and Templeton Emerging
Assuming the 90 days trading horizon Renaissance Europe is expected to generate 1.02 times less return on investment than Templeton Emerging. In addition to that, Renaissance Europe is 1.81 times more volatile than Templeton Emerging Mkt. It trades about 0.03 of its total potential returns per unit of risk. Templeton Emerging Mkt is currently generating about 0.06 per unit of volatility. If you would invest 639.00 in Templeton Emerging Mkt on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Templeton Emerging Mkt or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Renaissance Europe C vs. Templeton Emerging Mkt
Performance |
| Timeline |
| Renaissance Europe |
| Templeton Emerging Mkt |
Renaissance Europe and Templeton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renaissance Europe and Templeton Emerging
The main advantage of trading using opposite Renaissance Europe and Templeton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renaissance Europe position performs unexpectedly, Templeton Emerging 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 Emerging will offset losses from the drop in Templeton Emerging's long position.| Renaissance Europe vs. Echiquier Major SRI | Renaissance Europe vs. Cap ISR Actions | Renaissance Europe vs. Superior Plus Corp | Renaissance Europe vs. Origin Agritech |
| Templeton Emerging vs. Groupama Entreprises N | Templeton Emerging vs. Renaissance Europe C | Templeton Emerging vs. Superior Plus Corp | Templeton Emerging 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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