Correlation Between Barings Global and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Barings Global 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 Global 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 Global Floating and Templeton Global Bond, you can compare the effects of market volatilities on Barings Global 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 Global with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Templeton Global.
Diversification Opportunities for Barings Global and Templeton Global
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Templeton is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating 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 Global 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 Global Floating 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 Global i.e., Barings Global and Templeton Global go up and down completely randomly.
Pair Corralation between Barings Global and Templeton Global
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.31 times more return on investment than Templeton Global. However, Barings Global Floating is 3.24 times less risky than Templeton Global. It trades about 0.22 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.02 per unit of risk. If you would invest 760.00 in Barings Global Floating on August 31, 2024 and sell it today you would earn a total of 118.00 from holding Barings Global Floating or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Barings Global Floating vs. Templeton Global Bond
Performance |
| Timeline |
| Barings Global Floating |
| Templeton Global Bond |
Barings Global and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Templeton Global
The main advantage of trading using opposite Barings Global and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global 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 Global vs. Oppenheimer Senior Floating | Barings Global vs. Floating Rate Fund | Barings Global vs. Floating Rate Fund | Barings Global vs. Floating Rate Fund |
| Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Templeton Foreign Fund | Templeton Global vs. Templeton Foreign Fund | Templeton Global vs. Templeton Growth Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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