Correlation Between Templeton Constrained and First Eagle
Can any of the company-specific risk be diversified away by investing in both Templeton Constrained and First Eagle 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 Constrained and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEMPLETON STRAINED BOND and First Eagle Gold, you can compare the effects of market volatilities on Templeton Constrained and First Eagle 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 Constrained with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Constrained and First Eagle.
Diversification Opportunities for Templeton Constrained and First Eagle
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TEMPLETON and First is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding TEMPLETON STRAINED BOND and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold and Templeton Constrained 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 STRAINED BOND are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Templeton Constrained i.e., Templeton Constrained and First Eagle go up and down completely randomly.
Pair Corralation between Templeton Constrained and First Eagle
If you would invest 1,027 in TEMPLETON STRAINED BOND on August 28, 2024 and sell it today you would earn a total of 11.00 from holding TEMPLETON STRAINED BOND or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
TEMPLETON STRAINED BOND vs. First Eagle Gold
Performance |
| Timeline |
| Templeton Strained Bond |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Templeton Constrained and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Constrained and First Eagle
The main advantage of trading using opposite Templeton Constrained and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Constrained position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Templeton Constrained vs. Calvert High Yield | Templeton Constrained vs. Artisan High Income | Templeton Constrained vs. California High Yield Municipal | Templeton Constrained vs. Metropolitan West High |
| First Eagle vs. Artisan Emerging Markets | First Eagle vs. Fundvantage Trust | First Eagle vs. Kinetics Spin Off And | First Eagle vs. Versatile Bond Portfolio |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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