Correlation Between Templeton Global and Highland Floating
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Highland Floating 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 Highland Floating 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 Highland Floating Rate, you can compare the effects of market volatilities on Templeton Global and Highland Floating 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 Highland Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Highland Floating.
Diversification Opportunities for Templeton Global and Highland Floating
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Templeton and Highland is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Income and Highland Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Floating Rate 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 Highland Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Floating Rate has no effect on the direction of Templeton Global i.e., Templeton Global and Highland Floating go up and down completely randomly.
Pair Corralation between Templeton Global and Highland Floating
If you would invest 423.00 in Templeton Global Income on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Templeton Global Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Templeton Global Income vs. Highland Floating Rate
Performance |
| Timeline |
| Templeton Global Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Highland Floating Rate |
Templeton Global and Highland Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Highland Floating
The main advantage of trading using opposite Templeton Global and Highland Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Highland Floating 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 Highland Floating will offset losses from the drop in Highland Floating'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 |
| Highland Floating vs. Neuberger Berman Next | Highland Floating vs. SRH Total Return | Highland Floating vs. Nuveen Municipal Credit | Highland Floating vs. Doubleline Income Solutions |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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