Correlation Between Templeton Global and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Aberdeen 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 Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Income and Aberdeen Global IF, you can compare the effects of market volatilities on Templeton Global and Aberdeen 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Aberdeen Global.
Diversification Opportunities for Templeton Global and Aberdeen Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Templeton and Aberdeen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Income and Aberdeen Global IF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global IF 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 Income are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global IF has no effect on the direction of Templeton Global i.e., Templeton Global and Aberdeen Global go up and down completely randomly.
Pair Corralation between Templeton Global and Aberdeen Global
If you would invest 586.00 in Aberdeen Global IF on August 25, 2024 and sell it today you would earn a total of 17.00 from holding Aberdeen Global IF or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Templeton Global Income vs. Aberdeen Global IF
Performance |
| Timeline |
| Templeton Global Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aberdeen Global IF |
Templeton Global and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Aberdeen Global
The main advantage of trading using opposite Templeton Global and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Aberdeen 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Templeton Global vs. Aberdeen Global IF | Templeton Global vs. Nuveen Core Plus | Templeton Global vs. Templeton Emerging Markets | Templeton Global vs. Mfs Intermediate High |
| Aberdeen Global vs. Aberdeen Australia Ef | Aberdeen Global vs. Western Asset Emerging | Aberdeen Global vs. Cbre Clarion Global | Aberdeen Global vs. Credit Suisse High |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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