Correlation Between Templeton Global and Voya Global
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Voya 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 Voya 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 Voya Global Bond, you can compare the effects of market volatilities on Templeton Global and Voya 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Voya Global.
Diversification Opportunities for Templeton Global and Voya Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Templeton Global i.e., Templeton Global and Voya Global go up and down completely randomly.
Pair Corralation between Templeton Global and Voya Global
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Voya Global. In addition to that, Templeton Global is 1.49 times more volatile than Voya Global Bond. It trades about -0.13 of its total potential returns per unit of risk. Voya Global Bond is currently generating about -0.07 per unit of volatility. If you would invest 832.00 in Voya Global Bond on September 2, 2024 and sell it today you would lose (14.00) from holding Voya Global Bond or give up 1.68% 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. Voya Global Bond
Performance |
| Timeline |
| Templeton Global Bond |
| Voya Global Bond |
Templeton Global and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Voya Global
The main advantage of trading using opposite Templeton Global and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Voya 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 Voya Global will offset losses from the drop in Voya 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 |
| Voya Global vs. Icon Equity Income | Voya Global vs. Ms Global Fixed | Voya Global vs. Us Strategic Equity | Voya Global vs. Us Vector Equity |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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