Correlation Between Allianzgi Focused and Templeton Emerging
Can any of the company-specific risk be diversified away by investing in both Allianzgi Focused and Templeton Emerging 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 Allianzgi Focused and Templeton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Focused Growth and Templeton Emerging Markets, you can compare the effects of market volatilities on Allianzgi Focused and Templeton Emerging 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 Allianzgi Focused with a short position of Templeton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Focused and Templeton Emerging.
Diversification Opportunities for Allianzgi Focused and Templeton Emerging
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianzgi and Templeton is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Focused Growth and Templeton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Emerging and Allianzgi Focused 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 Allianzgi Focused Growth are associated (or correlated) with Templeton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Emerging has no effect on the direction of Allianzgi Focused i.e., Allianzgi Focused and Templeton Emerging go up and down completely randomly.
Pair Corralation between Allianzgi Focused and Templeton Emerging
Assuming the 90 days horizon Allianzgi Focused Growth is expected to generate 1.91 times more return on investment than Templeton Emerging. However, Allianzgi Focused is 1.91 times more volatile than Templeton Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. Templeton Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 3,261 in Allianzgi Focused Growth on September 3, 2024 and sell it today you would earn a total of 387.00 from holding Allianzgi Focused Growth or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Focused Growth vs. Templeton Emerging Markets
Performance |
| Timeline |
| Allianzgi Focused Growth |
| Templeton Emerging |
Allianzgi Focused and Templeton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Focused and Templeton Emerging
The main advantage of trading using opposite Allianzgi Focused and Templeton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Focused position performs unexpectedly, Templeton Emerging 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 Emerging will offset losses from the drop in Templeton Emerging's long position.| Allianzgi Focused vs. Templeton Emerging Markets | Allianzgi Focused vs. Shelton Emerging Markets | Allianzgi Focused vs. Mondrian Emerging Markets | Allianzgi Focused vs. Ep Emerging Markets |
| Templeton Emerging vs. Franklin Mutual Global | Templeton Emerging vs. Templeton Growth Fund | Templeton Emerging vs. Franklin Real Estate | Templeton Emerging vs. HUMANA INC |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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