Correlation Between Templeton China and Knights Of
Can any of the company-specific risk be diversified away by investing in both Templeton China and Knights Of 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 China and Knights Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton China World and Knights Of Columbus, you can compare the effects of market volatilities on Templeton China and Knights Of 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 China with a short position of Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton China and Knights Of.
Diversification Opportunities for Templeton China and Knights Of
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Templeton and Knights is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Templeton China World and Knights Of Columbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Columbus and Templeton China 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 China World are associated (or correlated) with Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Columbus has no effect on the direction of Templeton China i.e., Templeton China and Knights Of go up and down completely randomly.
Pair Corralation between Templeton China and Knights Of
If you would invest 970.00 in Knights Of Columbus on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Knights Of Columbus or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Templeton China World vs. Knights Of Columbus
Performance |
| Timeline |
| Templeton China World |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Knights Of Columbus |
Templeton China and Knights Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton China and Knights Of
The main advantage of trading using opposite Templeton China and Knights Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton China position performs unexpectedly, Knights Of 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 Knights Of will offset losses from the drop in Knights Of's long position.| Templeton China vs. Jhancock Real Estate | Templeton China vs. Franklin Real Estate | Templeton China vs. Amg Managers Centersquare | Templeton China vs. Deutsche Real Estate |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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