Correlation Between Templeton Growth and Sit International
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Sit International 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 Growth and Sit International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Sit International Growth, you can compare the effects of market volatilities on Templeton Growth and Sit International 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 Growth with a short position of Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Sit International.
Diversification Opportunities for Templeton Growth and Sit International
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Templeton and Sit is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Sit International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Growth and Templeton Growth 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 Growth Fund are associated (or correlated) with Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Growth has no effect on the direction of Templeton Growth i.e., Templeton Growth and Sit International go up and down completely randomly.
Pair Corralation between Templeton Growth and Sit International
Assuming the 90 days horizon Templeton Growth Fund is expected to generate 0.91 times more return on investment than Sit International. However, Templeton Growth Fund is 1.1 times less risky than Sit International. It trades about 0.18 of its potential returns per unit of risk. Sit International Growth is currently generating about 0.16 per unit of risk. If you would invest 2,674 in Templeton Growth Fund on October 25, 2024 and sell it today you would earn a total of 62.00 from holding Templeton Growth Fund or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Growth Fund vs. Sit International Growth
Performance |
| Timeline |
| Templeton Growth |
| Sit International Growth |
Templeton Growth and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Sit International
The main advantage of trading using opposite Templeton Growth and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.| Templeton Growth vs. Tiaa Cref Real Estate | Templeton Growth vs. Nexpoint Real Estate | Templeton Growth vs. Fidelity Real Estate | Templeton Growth vs. Sa Real Estate |
| Sit International vs. Siit Equity Factor | Sit International vs. Aqr Long Short Equity | Sit International vs. Ab Servative Wealth | Sit International vs. Doubleline Core Fixed |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |