Correlation Between Old Westbury and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Templeton 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 Old Westbury and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Fixed and Templeton Global Balanced, you can compare the effects of market volatilities on Old Westbury and Templeton 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 Old Westbury with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Templeton Global.
Diversification Opportunities for Old Westbury and Templeton Global
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Old and Templeton is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Fixed and Templeton Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Balanced and Old Westbury 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 Old Westbury Fixed are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Balanced has no effect on the direction of Old Westbury i.e., Old Westbury and Templeton Global go up and down completely randomly.
Pair Corralation between Old Westbury and Templeton Global
Assuming the 90 days horizon Old Westbury is expected to generate 3.52 times less return on investment than Templeton Global. But when comparing it to its historical volatility, Old Westbury Fixed is 2.24 times less risky than Templeton Global. It trades about 0.03 of its potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Templeton Global Balanced on December 25, 2024 and sell it today you would earn a total of 33.00 from holding Templeton Global Balanced or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Fixed vs. Templeton Global Balanced
Performance |
| Timeline |
| Old Westbury Fixed |
| Templeton Global Balanced |
Old Westbury and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Templeton Global
The main advantage of trading using opposite Old Westbury and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Templeton 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Old Westbury vs. Allianzgi Nfj Large Cap | Old Westbury vs. Touchstone Large Cap | Old Westbury vs. T Rowe Price | Old Westbury vs. Smead Value Fund |
| Templeton Global vs. Legg Mason Partners | Templeton Global vs. Pace High Yield | Templeton Global vs. Victory High Yield | Templeton Global vs. Rbc Bluebay Global |
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.
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