Correlation Between IE00B0H4TS55 and Templeton Global
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By analyzing existing cross correlation between IE00B0H4TS55 and Templeton Global Bond, you can compare the effects of market volatilities on IE00B0H4TS55 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 IE00B0H4TS55 with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and Templeton Global.
Diversification Opportunities for IE00B0H4TS55 and Templeton Global
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IE00B0H4TS55 and Templeton is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 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 IE00B0H4TS55 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 IE00B0H4TS55 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 IE00B0H4TS55 i.e., IE00B0H4TS55 and Templeton Global go up and down completely randomly.
Pair Corralation between IE00B0H4TS55 and Templeton Global
Assuming the 90 days trading horizon IE00B0H4TS55 is expected to generate 0.67 times more return on investment than Templeton Global. However, IE00B0H4TS55 is 1.48 times less risky than Templeton Global. It trades about 0.07 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 17,079 in IE00B0H4TS55 on September 14, 2024 and sell it today you would earn a total of 1,636 from holding IE00B0H4TS55 or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 42.35% |
| Values | Daily Returns |
IE00B0H4TS55 vs. Templeton Global Bond
Performance |
| Timeline |
| IE00B0H4TS55 |
| Templeton Global Bond |
IE00B0H4TS55 and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IE00B0H4TS55 and Templeton Global
The main advantage of trading using opposite IE00B0H4TS55 and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 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.| IE00B0H4TS55 vs. Esfera Robotics R | IE00B0H4TS55 vs. R co Valor F | IE00B0H4TS55 vs. CM AM Monplus NE | IE00B0H4TS55 vs. BEKA LUX SICAV |
| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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