Correlation Between Templeton Global and Doubleline Global
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Doubleline 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 Global and Doubleline Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Doubleline Global Bond, you can compare the effects of market volatilities on Templeton Global and Doubleline 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 Global with a short position of Doubleline Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Doubleline Global.
Diversification Opportunities for Templeton Global and Doubleline Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Doubleline is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Doubleline Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Global Bond and Templeton 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 Templeton Global Bond are associated (or correlated) with Doubleline Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Global Bond has no effect on the direction of Templeton Global i.e., Templeton Global and Doubleline Global go up and down completely randomly.
Pair Corralation between Templeton Global and Doubleline Global
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Doubleline Global. In addition to that, Templeton Global is 1.44 times more volatile than Doubleline Global Bond. It trades about -0.19 of its total potential returns per unit of risk. Doubleline Global Bond is currently generating about -0.08 per unit of volatility. If you would invest 849.00 in Doubleline Global Bond on September 13, 2024 and sell it today you would lose (11.00) from holding Doubleline Global Bond or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Doubleline Global Bond
Performance |
| Timeline |
| Templeton Global Bond |
| Doubleline Global Bond |
Templeton Global and Doubleline Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Doubleline Global
The main advantage of trading using opposite Templeton Global and Doubleline Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Doubleline 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 Doubleline Global will offset losses from the drop in Doubleline Global's long position.| Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual Global |
| Doubleline Global vs. Doubleline Strategic Modity | Doubleline Global vs. Doubleline Emerging Markets | Doubleline Global vs. Doubleline Emerging Markets | Doubleline Global vs. Doubleline Floating Rate |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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