Correlation Between Templeton Emerging and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging 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 Templeton Emerging and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Emerging Markets and Templeton Global Income, you can compare the effects of market volatilities on Templeton Emerging 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 Templeton Emerging with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Templeton Global.
Diversification Opportunities for Templeton Emerging and Templeton Global
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Templeton and Templeton is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Templeton Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Income and Templeton Emerging 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 Templeton Emerging Markets 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 Income has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Templeton Global go up and down completely randomly.
Pair Corralation between Templeton Emerging and Templeton Global
If you would invest 423.00 in Templeton Global Income on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Templeton Global Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Templeton Global Income
Performance |
| Timeline |
| Templeton Emerging |
| Templeton Global Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Templeton Emerging and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Templeton Global
The main advantage of trading using opposite Templeton Emerging and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging 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.| Templeton Emerging vs. Tekla Healthcare Investors | Templeton Emerging vs. Cohen Steers Limited | Templeton Emerging vs. Blackrock Enhanced Capital | Templeton Emerging vs. Tekla Life Sciences |
| Templeton Global vs. Aberdeen Global IF | Templeton Global vs. Nuveen Core Plus | Templeton Global vs. Templeton Emerging Markets | Templeton Global vs. Mfs Intermediate High |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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