Correlation Between Barings Active and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Barings Active and Templeton Global 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 Barings Active and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Templeton Global Bond, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Templeton Global.
Diversification Opportunities for Barings Active and Templeton Global
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Templeton is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short 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 Barings Active 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 Barings Active Short 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 Barings Active i.e., Barings Active and Templeton Global go up and down completely randomly.
Pair Corralation between Barings Active and Templeton Global
Assuming the 90 days horizon Barings Active Short is expected to generate 0.21 times more return on investment than Templeton Global. However, Barings Active Short is 4.73 times less risky than Templeton Global. It trades about -0.04 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.33 per unit of risk. If you would invest 926.00 in Barings Active Short on August 30, 2024 and sell it today you would lose (2.00) from holding Barings Active Short or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Barings Active Short vs. Templeton Global Bond
Performance |
| Timeline |
| Barings Active Short |
| Templeton Global Bond |
Barings Active and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Templeton Global
The main advantage of trading using opposite Barings Active and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Us Government Securities | Barings Active vs. Prudential Government Income | Barings Active vs. Us Government Plus | Barings Active vs. Us Government Securities |
| Templeton Global vs. Locorr Longshort Modities | Templeton Global vs. Old Westbury Short Term | Templeton Global vs. Siit Ultra Short | Templeton Global vs. Barings Active Short |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |