Correlation Between Huber Capital and Templeton World
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Templeton World 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 Huber Capital and Templeton World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and Templeton World Fund, you can compare the effects of market volatilities on Huber Capital and Templeton World 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 Huber Capital with a short position of Templeton World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Templeton World.
Diversification Opportunities for Huber Capital and Templeton World
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huber and Templeton is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Templeton World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton World and Huber Capital 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 Huber Capital Diversified are associated (or correlated) with Templeton World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton World has no effect on the direction of Huber Capital i.e., Huber Capital and Templeton World go up and down completely randomly.
Pair Corralation between Huber Capital and Templeton World
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 0.53 times more return on investment than Templeton World. However, Huber Capital Diversified is 1.9 times less risky than Templeton World. It trades about -0.15 of its potential returns per unit of risk. Templeton World Fund is currently generating about -0.26 per unit of risk. If you would invest 2,453 in Huber Capital Diversified on October 14, 2024 and sell it today you would lose (59.00) from holding Huber Capital Diversified or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. Templeton World Fund
Performance |
| Timeline |
| Huber Capital Diversified |
| Templeton World |
Huber Capital and Templeton World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Templeton World
The main advantage of trading using opposite Huber Capital and Templeton World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Templeton World 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 Templeton World will offset losses from the drop in Templeton World's long position.| Huber Capital vs. Lord Abbett Inflation | Huber Capital vs. Asg Managed Futures | Huber Capital vs. Ab Bond Inflation | Huber Capital vs. Tiaa Cref Inflation Link |
| Templeton World vs. Global Diversified Income | Templeton World vs. Manning Napier Diversified | Templeton World vs. Aqr Diversified Arbitrage | Templeton World vs. Huber Capital Diversified |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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