Correlation Between Deutsche Real and Templeton China
Can any of the company-specific risk be diversified away by investing in both Deutsche Real and Templeton China 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 Deutsche Real and Templeton China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Real Estate and Templeton China World, you can compare the effects of market volatilities on Deutsche Real and Templeton China 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 Deutsche Real with a short position of Templeton China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Real and Templeton China.
Diversification Opportunities for Deutsche Real and Templeton China
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DEUTSCHE and Templeton is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Real Estate and Templeton China World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton China World and Deutsche Real 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 Deutsche Real Estate are associated (or correlated) with Templeton China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton China World has no effect on the direction of Deutsche Real i.e., Deutsche Real and Templeton China go up and down completely randomly.
Pair Corralation between Deutsche Real and Templeton China
If you would invest 2,347 in Deutsche Real Estate on August 31, 2024 and sell it today you would earn a total of 54.00 from holding Deutsche Real Estate or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Deutsche Real Estate vs. Templeton China World
Performance |
| Timeline |
| Deutsche Real Estate |
| Templeton China World |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Deutsche Real and Templeton China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Real and Templeton China
The main advantage of trading using opposite Deutsche Real and Templeton China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Real position performs unexpectedly, Templeton China 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 China will offset losses from the drop in Templeton China's long position.| Deutsche Real vs. Franklin Natural Resources | Deutsche Real vs. Templeton Developing Markets | Deutsche Real vs. Franklin Utilities Fund | Deutsche Real vs. Aquagold International |
| Templeton China vs. Jhancock Real Estate | Templeton China vs. Franklin Real Estate | Templeton China vs. Amg Managers Centersquare | Templeton China vs. Deutsche Real Estate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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