Correlation Between Western Asset and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Adjustable and Templeton Global Total, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Templeton Global.
Diversification Opportunities for Western Asset and Templeton Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Templeton is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Adjustable and Templeton Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Total and Western Asset 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 Western Asset Adjustable 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 Total has no effect on the direction of Western Asset i.e., Western Asset and Templeton Global go up and down completely randomly.
Pair Corralation between Western Asset and Templeton Global
Assuming the 90 days horizon Western Asset Adjustable is expected to generate 0.07 times more return on investment than Templeton Global. However, Western Asset Adjustable is 15.04 times less risky than Templeton Global. It trades about 0.22 of its potential returns per unit of risk. Templeton Global Total is currently generating about -0.05 per unit of risk. If you would invest 910.00 in Western Asset Adjustable on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Western Asset Adjustable or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Western Asset Adjustable vs. Templeton Global Total
Performance |
| Timeline |
| Western Asset Adjustable |
| Templeton Global Total |
Western Asset and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Templeton Global
The main advantage of trading using opposite Western Asset and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Short Term Fund A | Western Asset vs. Western Asset Intermediate Term | Western Asset vs. T Rowe Price | Western Asset vs. Aquagold International |
| Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |