Correlation Between Templeton Global and Great West
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Great West 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 Great West 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 Great West Templeton Global, you can compare the effects of market volatilities on Templeton Global and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Great West.
Diversification Opportunities for Templeton Global and Great West
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and Great is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Great West Templeton Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Templeton 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Templeton has no effect on the direction of Templeton Global i.e., Templeton Global and Great West go up and down completely randomly.
Pair Corralation between Templeton Global and Great West
Assuming the 90 days horizon Templeton Global Bond is expected to generate 0.47 times more return on investment than Great West. However, Templeton Global Bond is 2.14 times less risky than Great West. It trades about -0.02 of its potential returns per unit of risk. Great West Templeton Global is currently generating about -0.03 per unit of risk. If you would invest 649.00 in Templeton Global Bond on October 23, 2024 and sell it today you would lose (1.00) from holding Templeton Global Bond or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Great West Templeton Global
Performance |
| Timeline |
| Templeton Global Bond |
| Great West Templeton |
Templeton Global and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Great West
The main advantage of trading using opposite Templeton Global and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Templeton Global vs. Shelton Funds | Templeton Global vs. The Texas Fund | Templeton Global vs. Rbb Fund | Templeton Global vs. Tax Managed Mid Small |
| Great West vs. Morningstar Global Income | Great West vs. Aqr Global Macro | Great West vs. Qs Global Equity | Great West vs. Rbc Bluebay Global |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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