Correlation Between Templeton Global and Great-west Templeton
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Great-west Templeton 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 Templeton 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 Templeton 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 Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Great-west Templeton.
Diversification Opportunities for Templeton Global and Great-west Templeton
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Templeton and Great-west is 0.83. 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 Templeton. 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 Templeton go up and down completely randomly.
Pair Corralation between Templeton Global and Great-west Templeton
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Great-west Templeton. In addition to that, Templeton Global is 1.33 times more volatile than Great West Templeton Global. It trades about -0.05 of its total potential returns per unit of risk. Great West Templeton Global is currently generating about 0.02 per unit of volatility. If you would invest 739.00 in Great West Templeton Global on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Great West Templeton Global or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Templeton Global Bond vs. Great West Templeton Global
Performance |
| Timeline |
| Templeton Global Bond |
| Great West Templeton |
Templeton Global and Great-west Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Great-west Templeton
The main advantage of trading using opposite Templeton Global and Great-west Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Great-west Templeton 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 Templeton will offset losses from the drop in Great-west Templeton's long position.| Templeton Global vs. Sprott Gold Equity | Templeton Global vs. Gabelli Gold Fund | Templeton Global vs. Great West Goldman Sachs | Templeton Global vs. International Investors Gold |
| Great-west Templeton vs. Locorr Market Trend | Great-west Templeton vs. Eagle Mlp Strategy | Great-west Templeton vs. Barings Active Short | Great-west Templeton vs. Mid Cap 15x Strategy |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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