Correlation Between Americafirst Large and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Americafirst Large 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 Americafirst Large and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and Templeton Global Bond, you can compare the effects of market volatilities on Americafirst Large 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 Americafirst Large with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and Templeton Global.
Diversification Opportunities for Americafirst Large and Templeton Global
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Americafirst and Templeton is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond and Americafirst Large 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 Americafirst Large Cap 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 Bond has no effect on the direction of Americafirst Large i.e., Americafirst Large and Templeton Global go up and down completely randomly.
Pair Corralation between Americafirst Large and Templeton Global
Assuming the 90 days horizon Americafirst Large Cap is expected to generate 1.69 times more return on investment than Templeton Global. However, Americafirst Large is 1.69 times more volatile than Templeton Global Bond. It trades about 0.06 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.03 per unit of risk. If you would invest 1,093 in Americafirst Large Cap on October 31, 2024 and sell it today you would earn a total of 362.00 from holding Americafirst Large Cap or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Large Cap vs. Templeton Global Bond
Performance |
| Timeline |
| Americafirst Large Cap |
| Templeton Global Bond |
Americafirst Large and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and Templeton Global
The main advantage of trading using opposite Americafirst Large and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large 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.| Americafirst Large vs. Ambrus Core Bond | Americafirst Large vs. Versatile Bond Portfolio | Americafirst Large vs. Ab Bond Inflation | Americafirst Large vs. Rbc Ultra Short Fixed |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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