Correlation Between Templeton Constrained and Matthews Asian
Can any of the company-specific risk be diversified away by investing in both Templeton Constrained and Matthews Asian 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 Matthews Asian 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 Matthews Asian Growth, you can compare the effects of market volatilities on Templeton Constrained and Matthews Asian 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 Matthews Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Constrained and Matthews Asian.
Diversification Opportunities for Templeton Constrained and Matthews Asian
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Templeton and Matthews is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Strained Bond and Matthews Asian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asian Growth 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 Matthews Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asian Growth has no effect on the direction of Templeton Constrained i.e., Templeton Constrained and Matthews Asian go up and down completely randomly.
Pair Corralation between Templeton Constrained and Matthews Asian
Assuming the 90 days horizon Templeton Strained Bond is expected to generate 0.08 times more return on investment than Matthews Asian. However, Templeton Strained Bond is 12.99 times less risky than Matthews Asian. It trades about 0.58 of its potential returns per unit of risk. Matthews Asian Growth is currently generating about 0.0 per unit of risk. If you would invest 1,018 in Templeton Strained Bond on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Templeton Strained Bond or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Strained Bond vs. Matthews Asian Growth
Performance |
| Timeline |
| Templeton Strained Bond |
| Matthews Asian Growth |
Templeton Constrained and Matthews Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Constrained and Matthews Asian
The main advantage of trading using opposite Templeton Constrained and Matthews Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Constrained position performs unexpectedly, Matthews Asian 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 Matthews Asian will offset losses from the drop in Matthews Asian's long position.| Templeton Constrained vs. Barings High Yield | Templeton Constrained vs. Gmo High Yield | Templeton Constrained vs. Rbc Bluebay Global | Templeton Constrained vs. Calamos High Income |
| Matthews Asian vs. Matthews Pacific Tiger | Matthews Asian vs. Matthews China Fund | Matthews Asian vs. Matthews Asia Dividend | Matthews Asian vs. Matthews Asia Growth |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |